Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
costs
B
revenues
C
efforts
D
time
Understanding the Answer
Let's break down why this is correct
Answer
In marginal analysis, we compare the additional benefits of an action to its additional costs. This helps us decide whether doing something is worth it or not. For example, imagine you are thinking about buying a new video game. If the game costs $50 but you expect to enjoy it enough to feel it’s worth $70 in fun, the additional benefit outweighs the cost, making it a good choice. On the other hand, if the game only brings you $40 worth of enjoyment, then the cost is greater than the benefit, and it may not be worth buying.
Detailed Explanation
Marginal analysis helps us decide if the benefits of doing something are worth the extra costs. Other options are incorrect because Some might think we compare benefits to revenues, but revenues are what we earn, not what we spend; It's easy to confuse efforts with costs.
Key Concepts
Marginal Analysis
Cost-Benefit Comparison
Resource Allocation
Topic
Understanding Marginal Analysis
Difficulty
easy level question
Cognitive Level
understand
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