Question

@JJ_Stark
Why do consumers and producers conduct marginal analyses?

A. To determine whether a price increase will change what a consumer will buy
B. To understand the type of taxes paid on a good or service
C. To suggest a way to package a product so that it causes less pollution
D. To predict the amount of environmental pollution caused by a manufacturer

Answer 1

Marginal analysis examines how the costs and benefits change in response to incremental changes in actions. Any additional action by an individual or a firm, such as buying an additional pair of shoes or increasing production of a product by an additional unit, brings additional cost. The central question in marginal analysis is whether the expected benefits of that action exceed the added cost.

Answer 2

a

Answer 3

Yes