Question

Thinking at the margin means deciding about _____.

Answer 1

Thinking at the margin involves evaluating the additional costs and benefits of increasing or decreasing the amount of a good or service by one unit. It is a cornerstone of economic decision-making, utilizing marginal analysis and considering the law of diminishing marginal utility.

Step-by-step explanation:

Thinking at the margin means deciding about how much more or less to do or produce by evaluating the additional costs and benefits of adding or subtracting one more unit, such as an hour of time or a dollar of cost. This marginal analysis is crucial in economic decision-making and involves considering the incremental differences in costs and benefits, rather than making all-or-nothing decisions. One example of thinking at the margin is deciding how much longer to sleep, weighing the marginal benefit against the marginal cost. Another is deciding how long to continue exercising, such as running, where the marginal gains of additional minutes might not be worth the extra effort due to the law of diminishing marginal utility, which states that the additional gains tend to decrease as one receives more of a good or service.

Answer 2

Thinking at the margin means you are deciding about the next, what is the next step for you or additional action that means to you.
The word Marginal means additional, one more or sometimes one less. Good economist always have a marginal thinking, thats why most economics talks about marginal thinking.