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.

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Definitions:

Need Recognition

The initial step in the consumer decision process that occurs when a consumer identifies a difference between their current state and a desired state.

Visible or Symbolic

Refers to methods of communication or expression where meanings are either directly observable or represented through symbols.

Social Risk

The potential for an individual to experience loss or damage to their social status, relationships, or respect within a community.

Functional Risk

The potential for a product or service to fail to perform its intended purpose, causing inconvenience or loss to the consumer.