Principles of Microeconomics / Unit 1 MIC 0019 short lesson, about 20 seconds
Marginal Analysis
Captions available
The idea
Marginal analysis compares the benefit and cost of one more unit, or one less, never all or nothing. The margin is the current level of an activity.
In practice
Nobody decides whether to use water, only whether to take a shorter shower.
Where people slip
The rule: continue while marginal benefit exceeds marginal cost, stop where they meet. Every firm and consumer here follows it.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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