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Carlos realizes that if he studies an extra hour for his test, he will score five points higher. For each extra hour spent studying, he is getting one hour less of sleep. When deciding whether to spend an additional hour study or sleeping, Carlos is engaged in what economic activity?
a) bartering
b) market transactions
c) marginal analysis
d) trade negotiations

Respuesta :

The correct option is C. 
Marginal analysis involves the analysis of the additional benefits that will be derived from an activity compare to the cost of that activity. Businesses use marginal analysis to make decisions on the right investments to engage in in order to maximize profits.
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