a. opportunity cost b. utility c. economics d. marginal analysis
Work Step by Step
Opportunity cost is the next-best thing that must be forgone in order to produce one more unit of a given product (pg 5). Utility is the pleasure, happiness, or satisfaction obtained from consuming a good or service (pg 5). Economics is the social science concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity (pg 5). Marginal analysis is making choices based on comparing marginal benefits with marginal costs (pg 6).