Making Choices on the Margin Means

question 258

Multiple Choice

Making choices on the margin means

• A)making decisions in the largest possible increments.
• B)making a decision based on emotions.
• C)scribbling on the edges of your notebook paper.
• D)taking account of all marginal benefits,all opportunity costs,and all sunk costs.
• E)comparing all relevant alternatives systematically and incrementally.

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Definitions:

Horizontal Price Fixing

Horizontal price fixing occurs when companies at the same level of the supply chain agree to set prices or other market conditions, reducing competition.

Grocery Stores

Retail stores that primarily sell food, including fresh produce, meats, dairy products, and various packaged goods.

Loaf of Bread

A shaped mass of baked bread, commonly sliced for consumption and made from a variety of grains.

Price Fixing

An illegal agreement among competitors to set prices at a certain level, rather than letting them fluctuate naturally with market forces.