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updated 4 months ago

what “marginal” means, and explain why marginal analysis leads to optimal or efficient quantities

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updated 4 months ago

Marginal analysis is highly important to master in case you work in the field of economics. Practically it is the evaluation (or examination) of the activity’s possible benefits in comparison to the costs incurred by that activity.

This analysis considers several points, among them, are Marginal Benefit, Marginal Cost, and Marginal Net Benefit.

Marginal Benefit is some benefit one gains in case of going for the additional activity.

Marginal Cost is the cost of that additional activity.

Marginal Net Benefit is the essential difference between Marginal Benefit and Marginal Cost of the activity. By calculating it one knows whether the activity is worth the risk.

This type of analysis is often used in microeconomics, especially in cases where one needs to find out how the system can be affected by marginal manipulation of variables. This analysis gives the general understanding of the possible results of small changes.

Marginal analysis is highly important to master in case you work in the field of economics. Practically it is the evaluation (or examination) of the activity’s possible benefits in comparison to the costs incurred by that activity.

This analysis considers several points, among them, are Marginal Benefit, Marginal Cost, and Marginal Net Benefit.

Marginal Benefit is some benefit one gains in case of going for the additional activity.

Marginal Cost is the cost of that additional activity.

Marginal Net Benefit is the essential difference between Marginal Benefit and Marginal Cost of the activity. By calculating it one knows whether the activity is worth the risk.

This type of analysis is often used in microeconomics, especially in cases where one needs to find out how the system can be affected by marginal manipulation of variables. This analysis gives the general understanding of the possible results of small changes.

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