In marginal analysis, a marginal change is one that:

• A. Describes the average benefit or average cost per unit, found by dividing totals by quantity
• B. Occurs only when there is a large, discrete change in output or consumption
• C. Measures the total benefit or total cost at a given level of output or consumption
• D. Results from producing or consuming one additional unit, measuring the change in total benefit or total cost from that small increment

Answer: (D)

Verified step by step guidance

1. Understand that marginal analysis focuses on the effect of a small incremental change, typically one additional unit, in production or consumption.
2. Recognize that a marginal change measures how total benefit or total cost changes when output or consumption increases by exactly one unit.
3. Distinguish marginal change from average values, which are calculated by dividing total benefit or total cost by the quantity, rather than looking at the change from one unit to the next.
4. Note that marginal change is not about large or discrete jumps in quantity, but about small, incremental adjustments.
5. Summarize that marginal analysis helps decision-makers evaluate the additional benefit or cost of producing or consuming one more unit, which is crucial for optimizing economic decisions.