Which person is making decisions using ""marginal analysis""A. Betty makes decisions by comparing the status-quo with something whichis very different. B. Cameron makes decisions by choosing the option which is mostexpensive. C. Dafila makes decisions by comparing her marginal rate of substitution with that of her friends. D. Andrew makes decisions by comparing the status-quo with somethingwhich is only slightly different.

Question

Ruben Medina

Social Studies

9 July, 04:37

Which person is making decisions using ""marginal analysis""A. Betty makes decisions by comparing the status-quo with something whichis very different. B. Cameron makes decisions by choosing the option which is mostexpensive. C. Dafila makes decisions by comparing her marginal rate of substitution with that of her friends. D. Andrew makes decisions by comparing the status-quo with somethingwhich is only slightly different.

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Norris · Answer 1

D. Andrew makes decisions by comparing the status-quo with somethingwhich is only slightly different

Explanation:

Marginal analysis describes the additional benefit of an activity in comparison to the additional costs incurred from that activity. It is used by businesses in decision-making as regards profits and costs.

From the above, if Andrew decides to change the status quo slightly, his additional benefit or cost by this slight change is his marginal benefit or cost (marginal analysis)