Friday, February 13, 2015

Marginalism

Marginalism:
the process of analyzing the additional or incremental costs or benefits arising from a choice or decision. 

Marginal means a small change. 

The text uses marginal cost, the cost of increasing production by one unit. 

This can be illustrated by putting added miles on a car; the change in the odometer reading is the marginal mileage.

No comments:

Post a Comment