Asked by Lunghile Abigail on Jun 23, 2024
Verified
For which decision would marginal analysis be relevant?
A) spending $1,000 on a summer vacation or on painting your house
B) deciding how much to spend on a summer vacation
C) buying a new car or a second-hand car
D) eating dinner at home or going out to a restaurant for dinner
Marginal Analysis
The study of marginal decisions.
- Distinguish and describe the variance between decisions characterized by "either-or" and those determined by "how much."
- Apply the principle of marginal analysis to business and economic decisions.
Verified Answer
JW
Jordan WellsJun 26, 2024
Final Answer :
B
Explanation :
Marginal analysis is used to make decisions about how much of something to do or spend. Therefore, deciding how much to spend on a summer vacation would be the most relevant decision for marginal analysis.
Learning Objectives
- Distinguish and describe the variance between decisions characterized by "either-or" and those determined by "how much."
- Apply the principle of marginal analysis to business and economic decisions.
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