Question

16. Marginal thinking involves:a. accurately calculating the opportunity cost of a decision.b. always acting in your own self-interest.c. comparing the total benefit and total cost of a decision.d. weighing the incremental benefit against the incremental cost of a decision.

Answer 1

weighing the incremental benefit against the incremental cost of a decision.

Step-by-step explanation:

In Business management and economics, Marginal thinking involves weighing the incremental benefit against the incremental cost of a decision.

When individuals such as a decision-makers or project manager, is implementing and executing a project, it is very essential and important that he does marginal thinking; by weighing the overall and potential benefits or gains to be derived from that project in comparison with the costs of execution.

Hence, when the incremental benefits is greater than the incremental cost of the decision, then it is logical and safe to make the move or do it.