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zubka84 [21]
2 years ago
7

Economists say that individuals make decisions at the margin. What does its menas?

Business
1 answer:
leva [86]2 years ago
4 0

Answer:

When Economists say that humans make decisions at the margin they mean that decisions are made on the basis of the cost and benefit of getting an additional unit of a good/ service.

Marginal benefit refers to the additional utility that we will derive from consuming one extra unit of a good or service and factors in heavily into our decision making. We usually accept a decision if the Marginal benefit is higher or equal to the Marginal cost ( cost of the additional unit) of the good/service.

If the Marginal Cost is instead higher, the decision would most probably be cancelled.

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Explanation:

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3 years ago
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Answer:  

Price elasticity of demand measures how much the quantity increases when price decreases.

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If the percentage in the change in the quantity demanded is bigger than the percentage in the change of the price we talk about elastic demand.

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6 0
3 years ago
A portfolio is invested 16 percent in Stock G, 56 percent in Stock J, and 28 percent in Stock K. The expected returns on these s
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Answer:

16.16%

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The formula to compute the expected rate of return is shown below: -

Expected rate of return = (Weightage of Stock G × Expected Returns G) + (Weightage of Stock J × Expected Returns J) + (Weightage of Stock K × Expected Returns K)

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