2 years ago

In using marginal analysis, we:

Advanced Placement (AP)

1 answer:

BARSIC [14]2 years ago

7 0

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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