Marginal Analysis Refers To

question 2

Multiple Choice

Marginal analysis refers to:

• A) points that lie on the budget set
• B) costs that were incurred in the past and cannot be recovered, and thus should not affect current decisions
• C) comparing the benefits and costs of choosing a little more or a little less of a good
• D) whatever must be given up to obtain something that is desired

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Definitions:

Factor Market

A factor market is the marketplace where productive resources like labor, capital, and natural resources are bought and sold.

Product Market

A marketplace where finished goods and services are bought and sold.

Product Market

The marketplace in which final goods or services are offered for purchase by consumers, businesses, and the public sector.

Cell Phones

Portable electronic devices used for communication over long distances without a physical connection.