Marginal Analysis Involves Examining

question 124

Multiple Choice

Marginal analysis involves examining:

• A) what happens to a firm's costs and revenues when production is changed by one unit.
• B) the sensitivity of consumer demand for a product or product category.
• C) the quantity of products expected to be sold at different prices.
• D) the difference between marginal revenue and total revenue.
• E) the difference between marginal cost and total cost.

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Definitions:

Weber's Law

A principle stating that the change in a stimulus that will be just noticeable is a constant ratio of the original stimulus.

Just Noticeable Difference

The minimal change in a stimulus that can just barely be detected by an organism.

Absolute Threshold

The lowest level of stimulation that a person can consciously detect 50 percent of the time the stimulation is present.

Stimulus

is any object or event that elicits a sensory or behavioral response in an organism.