What do economists mean by the word "marginal"? A. extra or additional B. small C. unimportant D. first

In economics, when we refer to "marginal," we're talking about the extra or additional benefits or costs incurred from a decision. For instance, if a company evaluates the marginal cost of producing one more unit of a product, they are assessing how much it will cost to produce that extra unit compared to what they already produce. It's all about weighing the impact of small changes in decision-making! Economists often use marginal analysis to make decisions that maximize benefit while minimizing cost. A classic example is evaluating whether to hire one more employee; this involves considering the marginal productivity of that worker against the wage they’ll be paid. The concept really helps in recognizing the most efficient use of resources!