What Does Making Decisions "At the Margin" Mean

question 150

Multiple Choice

What does making decisions "at the margin" mean?

• A) that people make those decisions that do not impose a marginal cost
• B) that people evaluate how easily a decision can be reversed if problems arise
• C) that people compare the marginal costs and marginal benefits of each decision
• D) that people always calculate the marginal dollar costs for each decision

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Definitions:

Management Rights

The prerogative of an employer to make decisions about operational and managerial aspects of the business.

Personal Profits

Income or gains received by an individual from various sources, including employment, investments, or personal business ventures.

Capital Contribution

Funds or assets provided by partners or shareholders to increase the capital of a company or partnership.

Share Losses

The financial reductions in value or earnings experienced by shareholders as a result of a decrease in the price or profitability of the shares.