Which of the following best describes a marginal change in microeconomics?

• A. A small, incremental adjustment to an existing plan of action
• B. A decision made without considering opportunity costs
• C. A change that results from a shift in market equilibrium
• D. A complete overhaul of a firm's production process

Answer: (A)

Verified step by step guidance

1. Understand the concept of 'marginal change' in microeconomics, which refers to a small, incremental adjustment to an existing plan or decision rather than a large or complete change.
2. Recognize that marginal analysis involves comparing the additional benefits and additional costs of a small change in an economic variable, such as production or consumption.
3. Eliminate options that describe decisions without considering opportunity costs, as marginal changes always involve weighing additional costs and benefits.
4. Exclude options that describe large-scale changes, such as shifts in market equilibrium or complete overhauls, since marginal changes focus on small, step-by-step adjustments.
5. Conclude that the best description of a marginal change is 'a small, incremental adjustment to an existing plan of action' because it captures the essence of marginal analysis in microeconomics.