In Economic Analysis,the Principle of Marginal Analysis Refers To

question 46

Multiple Choice

In economic analysis,the principle of marginal analysis refers to:

• A)dividing large problems into smaller,more manageable ones.
• B)the notion that a group's problems can be effectively analyzed by focusing on only a small subsample of the group.
• C)the result that the optimal quantity of an activity is that at which marginal benefit is equal to marginal cost.
• D)the result that the optimal quantity of an activity is that at which the net benefit of the representative,or marginal,individual is maximized.

---

Definitions:

Annually

Pertaining to an occurrence, calculation, or payment that happens every year.

Payment Schemes

Systems or methods used to transfer money between entities, often involving structured processes and standards for executing transactions.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment.

Exercise Equipment

Tools and machines designed for physical activities that improve fitness, such as treadmills, weights, and stationary bikes, used in both home and commercial gyms.