Which question is not an example involving marginal analysis?
Social Studies · High School · Tue Nov 03 2020
Answered on
To determine which question is not an example involving marginal analysis, it's important to understand that marginal analysis involves evaluating the incremental changes or additions associated with a decision. Here are some examples of questions involving marginal analysis:
1. How much additional revenue will be generated by producing one more unit?
- This is an example of marginal analysis because it's asking about the incremental change in revenue associated with producing one additional unit.
2. What is the additional cost of hiring one more employee?
- This is an example of marginal analysis, as it focuses on the incremental cost associated with hiring an additional employee.
3. Should we expand production given the current level of output?
- This question does not explicitly involve marginal analysis because it does not ask about the specific incremental changes or additions associated with expanding production.
4. What is the additional profit we can expect if we increase advertising spending?
- This is an example of marginal analysis because it seeks to understand the incremental change in profit associated with increasing advertising spending.
Therefore, option 3 ("Should we expand production given the current level of output?") is the question that is not an example involving marginal analysis.