Introduction to Economics 1 Deneme Sınavı Sorusu #1114177

What is the concept for describing that “every decision is made by considering incremental changes”?


Incentive

Opportunity cost

Thinking at the margin

Positive-sum game

Externalities


Yanıt Açıklaması:

Marginal Changes

Thinking at the margin while taking an action indicates that the rational decision makers such as individuals, firms, and students, take an action if and only if the marginal benefit of the action is greater than the marginal cost. Thus, we make decisions based on the criteria of comparing the marginal benefit and marginal costs of our actions and if the expected marginal benefit exceeds the expected marginal cost we take the action.

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