Marginal+Analysis+-+Benefits+and+Costs


 * Marginal Benifits & Costs**

Think of the word marginal like extra. So the marginal Benifit would be the extra benefit. The benefit you gain for doing/recieving more of the object. It is one of the determining factors when you have a decision to make. Where the marginal cost is how much more it costs you to do/recieve more of what you already had/done. You want to know whether the marginal benefit outweighs the marginal cost. If it does than you should technically follow through on your decision.

You might not agree with me but there can be to much of a good thing. Thought somethings may seem right now like you could never have enough like money. After you have billions of dollars a dollar will become virtually worthless but to a hobo that same dollar means the world to him/her it means that they get to eat that night. Or like candy plenty of people love candy and wish that they could eat it for breakfast, lunch and dinner but after awhile you would get sick so the marginal costs are outweighing the benefit so that would not be a good idea, atleast up to the point before you get sick.

the box is how long the marginal benefit outweighs the marginal cost. So outside the box it is not worth doing anymore.

media type="youtube" key="szE0ZeTsLcg&hl=en&fs=1" height="344" width="425" Everyone loves a burger from McDonalds but after eating just McDonalds for over a week this is what can happen to you it just doesn't seem worth it anymore.

media type="youtube" key="KIYI50XDkPc&hl=en&fs=1" height="344" width="425" 'Meet the Parents' a movie that "almost" everyone loved but once you've seen it so many times you start to feel like these two ducks.

These are some links that can give you more information. [|marginal benefits and costs] [|marginal costs] [|Marginal benefit and cost review]

The efficient level of output is where the MB=MC.

If the cost of making 9 peices of pizza is 90$ and the cost of making 10 peices of pizza is 110$, What is the marginal cost of producing the tenth peice of pizza?

the marginal cost is 20$