Question

Making a decision at the margin is possible only in situations where _____. a.the available alternatives can be divided into increments
b. the available opportunity costs are unclear or complicated
c.there are more than three different types of alternatives to consider
d.there are differences in the amount of time each alternative will consume

Answer 1

Making a decision at the margin is possible only in situations where:

Option 'b'. the available opportunity costs are unclear or complicated

Economists use a decision at the margin to help them analyze many factors, where the marginal value can be very high, very low or in between. They consider if the marginal benefit is greater than the marginal cost.