In Economics, the Term "Marginal" Usually Refers to

question 161

Multiple Choice

In economics, the term "marginal" usually refers to

• A)a small change in an economic variable
• B)a low-quality product or resource
• C)an unimportant and irrelevant economic variable
• D)an all-or-nothing economic decision
• E)a footnote or minor point

---

Definitions:

Profit Maximization

The process in which a company calculates the most profitable pricing and production volume.

Production Function

An equation that describes the relationship between inputs used in production and the output generated from those inputs.

Factor Prices

The market prices of the inputs used in production, such as labor, capital, and land.

Minimum Cost

The lowest possible expense that can be incurred in the production of a good or service without sacrificing the quality or quantity.