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The Principle of Optimization at the Margin states that ________.

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The Principle of Optimization at the Margin states that ________.

The Principle of Optimization at the Margin states that ________.

▸ moving toward the optimal alternative makes the decision maker better off and moving away from it makes him worse off

▸ an optimal alternative has the highest net benefits in comparison to other feasible alternatives

▸ moving toward the optimal alternative makes the decision maker worse off and moving away from it makes him better off

▸ an optimal alternative has the lowest indirect costs in comparison to other feasible alternatives

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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karotop02 Author

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Helped a lot

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Good timing, thanks!

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