1.6 Marginal Analysis and Consumer Choice
Completion requirements
CBA-2.A
a. Define the key assumptions of consumer choice theory.
b. Explain (using a table or graph as appropriate) how a rational consumer’s decision making involves the use of marginal benefits and marginal costs.
c. Calculate (using a table or a graph when appropriate) how a rational consumer’s decision making involves the use of marginal benefits and marginal costs.
CBA-2.B
a. Define marginal analysis and related terms.
b. Explain a decision using marginal analysis (using a table or a graph when appropriate).