In using marginal analysis, we:
1 answer:
Answer:
B. examine only the marginal costs, ignoring the sunk costs.
Explanation:
Marginal Analysis refers to the analysis of marginal (additional) cost & marginal (additional) revenue.
Eg : Producer Equilibrium is where Marginal Revenue = Marginal Cost.
Marginals vary only due to variable, & not fixed components.
Marginal Analysis examines only marginal costs, & not fixed or sunk costs.
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