Marginal costs and benefits are a vital part of economics because they help to provide the relevant measurement of costs and benefits at a. How can the answer be improved.
Businesses and their customers constantly balance costs and benefits a customer comparing menu prices decides which meal will give him the most pleasure for the price.
Of great importance in the theory of marginal cost is the distinction between the marginal private and social costs the marginal private cost.
The reason we want marginal benefit to be equal to marginal cost is because of the observed fact that marginal costs and benefits don’t stay constant as more of a.
When businesses are planning how much to produce, they must pay close attention to marginal costs and marginal benefits -- the incremental changes in costs and benefits that result from an increase in production. Price is determined by both marginal utility and marginal cost condillac emphasized that value is not based upon cost but that costs were paid because of value. In economics, one of the primary measuring sticks for making decisions is weighing marginal benefits and marginal costs what do we mean by the word marginal.