question 3 (2 points) in marginal analysis, what is compared to make economic decisions? a) total costs and…

question 3 (2 points) in marginal analysis, what is compared to make economic decisions? a) total costs and total benefits. b) average costs and average benefits. c) marginal costs and marginal benefits. d) fixed costs and variable costs.

question 3 (2 points) in marginal analysis, what is compared to make economic decisions? a) total costs and total benefits. b) average costs and average benefits. c) marginal costs and marginal benefits. d) fixed costs and variable costs.

Answer

Brief Explanations:

In marginal analysis, marginal costs and marginal benefits are compared to make economic decisions. Marginal cost is the change in total cost from producing one more unit, and marginal benefit is the change in total benefit from one more unit. When marginal benefit exceeds marginal cost, it is beneficial to increase production or take an action, and vice - versa.

Answer:

C. Marginal costs and marginal benefits.