Question

Which scenario is asking you to apply marginal analysis? Select the correct answer below: Smaller economies like Belgium, Korea, and Pakistan are better equipped to take full advantage of division of labor, specialization, and economies of scale within their own borders. Do you agree? It costs $3 to go down the water slide. The first time you go down the slide, you are really excited, but your interest decreases each time you go down. How many times should you go down the water slide? You have a budget of $5 and the price of bananas is 0.50 per pound. How many pounds of bananas can you afford? Willingness to pay for a good is downward-sloping. What is this curve called?

Answer 1

Answer:

It costs $3 to go down the water slide. The first time you go down the slide, you are really excited, but your interest decreases each time you go down. How many times should you go down the water slide

Explanation:

Marginal analysis refers to an examination with respect to the extra benefits that should be compared to an extra cost spent. It would be used for maximizing the future profits

In the given case, the marginal analysis is used as the decisions are to be taken so that the net gain could be maximized

Therefore the correct option is second