Marginal Analysis Answers
Definition: Marginal Analysis is the study of marginal decisions, those resulting from small changes in an activity.
Example: The decision of whether to sleep for one more hour or study for one more hour.
1. False. Marginal analysis deals with how much, not one over the other.
2. 250 calories.
3. Deciding whether or not to hire one more employee is an example of marginal analysis. The decision is based on the margin: just one more employee.
Definition: Marginal Analysis is the study of marginal decisions, those resulting from small changes in an activity.
Example: The decision of whether to sleep for one more hour or study for one more hour.
1. False. Marginal analysis deals with how much, not one over the other.
2. 250 calories.
3. Deciding whether or not to hire one more employee is an example of marginal analysis. The decision is based on the margin: just one more employee.