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Homework answers / question archive / Most choices involve _____, which involves comparing the benefits and costs of choosing a little more or a little less of a good
Most choices involve _____, which involves comparing the benefits and costs of choosing a little more or a little less of a good.
A. utility
B. marginal analysis
C. the budget constraint
D. consumption
The correct answer is B. marginal analysis.
Reason: When a producer chooses between the products based on a comparison between the costs of manufacturing goods and the benefits received by it is called marginal analysis.
The marginal analysis means producing a product after analyzing that additional or extra cost paid for a product in the production process will give extra benefits or not to the company. The marginal analysis is a process in which the cost and benefit are compared and a decision is taken for maximizing the profit.
This analysis is a tool for a company while decision making and choosing which product has to be made less or which has to be produced more.
