Making a Decision "On the Margin" Involves Comparing

question 83

Multiple Choice

Making a decision "on the margin" involves comparing:

• A)additional benefits against additional costs.
• B)total benefits against total costs,which include benefits and costs from past decisions.
• C)sunk costs against opportunity costs.
• D)All of these are true.

---

Definitions:

Intermediate Product

This term describes a product that has undergone some processing but is not yet a final product. It requires further manufacturing before reaching the end consumer.

Processed Further

Refers to additional operations or enhancements performed on a product after the initial manufacturing or production stage.

Differential Cost

Represents the difference in total cost that will arise from choosing one option over another in business decisions, often used in the evaluation of alternative projects or decisions.

Product P

A placeholder name for a specific product, often used in examples or theoretical scenarios.