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:

Financial Institution

An organization that provides financial services, such as banking, insurance, investment management, and loans to individuals, businesses, and governments.

Paid-In Capital

Funds raised by a company through the issuance of shares to shareholders, representing capital contributed to the business above the nominal or par value of the shares.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument.

Issue Price

The price at which new shares, bonds, or other securities are offered to the public or existing shareholders for sale.