Question

A marginal change is a a. change that involves little, if anything, that is important. b. small, incremental adjustment. c. change for the worse, and so it is usually a short-term change. d. large, significant adjustment.

Answer 1

Answer:

b. small, incremental adjustment.

Explanation:

In economics, the term marginal change implies to small incremental change in the existing trend of the market or economy. Marginal change does not usually affect the whole economy but may result in a slight difference in the aggregate results.

For example, if a retailer raises the price of a product from $9 to $10 due to increase in marginal cost of the product, it is a marginal change.

Or suppose the average cost of a bus ticket to the next city cost $20 and the total cost of the 40 seats is $800 dollars. But imagine if three seats remained empty and one passenger who did not book a seat wants to pay $15 for a ticket, the driver will willingly accept the offer because although the average cost of a ticket is $20, the marginal cost is merely the cost of the ticket. The driver has to recover gas money from all the three empty seats.