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Definition and explanation. Thinking on the margin or marginal thinking means considering how much you value an addition of something. You ignore the sunk costs of what’s already going to happen, and weigh up the costs and benefits of adding in something extra (extra work, money, bananas etc.).
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Thinking at the margin means to let the past go and to think forward to the next hour, day, year, or dollar that you expend in time or money. What’s better for you now or in the next few minutes? If you think at the margin, you are thinking ahead.
Aug 2, 2023 · When thinking at the margin, individuals and decision-makers assess the costs and benefits of producing or consuming one more unit of a good or service. In other words, they evaluate the trade-offs of increasing or decreasing their current level of activity by a small amount.
Jun 3, 2018 · Thinking on the margin can even help you build your wealth and becoming rich slowly. But that’s another story. Whether the issue is working harder to earn more or allocating your time, thinking on the margin is a powerful tool for thinking clearly and making good, and sometimes great, decisions.
Thinking on the margin is the key to decision making. When we make decisions, we are making comparisons between alternatives. What opportunity are you giving up? In this lesson Professor List will walk you through decision making like an economist.
The margin is the current level of an activity. Think of it as the edge from which a choice is to be made. A choice at the margin is a decision to do a little more or a little less of something. Assessing choices at the margin can lead to extremely useful insights.
Jan 22, 2018 · Thinking at the Margin. Epoxydude/Getty Images. By. Mike Moffatt. Updated on January 22, 2018. From an economist's perspective, making choices involves making decisions 'at the margin' -- that is, making decisions based on small changes in resources: How should I spend the next hour? How should I spend the next dollar?
