Principles of Microeconomics / Unit 17 MIC 1601 short lesson, about 20 seconds
Scarcity, Choice and the Margin
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The idea
Scarcity forces choice; every choice has an opportunity cost, the best alternative given up; and choices are made at the margin, one more unit's benefit against its cost. That comparison runs through every unit.
In practice
One more hour, one more worker, one more ton: the same question.
Where people slip
Sunk costs are not marginal and do not count; averages are not marginal and mislead.
Your place on the trail
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