Objective
In this webinar teachers will be able to:
- Explain that some decisions re made based on total benefits and costs, while most economic decision making focuses on comparing marginal benefit and marginal cost.
- Distinguish between marginal and totals.
- Explain that the economic way of thinking results in effective decisions being made.
Standards
Concepts
Description
When we make decisions, we attempt to maximize our total satisfaction; however, some decisions cannot be made based on total benefit versus total cost. Marginal analysis is the crux of the economic way of thinking in microeconomics, and is used to make incremental decisions. This webinar will explore how to calculate marginal figures and make economic decisions based on marginal analysis.