Question

Marginalism mean that human have to compare the benefit of the option they select against what they give up (opportunity cost) can someone help me come with a example this is economic hw

Answer 1

Marginalism occurs when people decide when people make choices about the value of one more unit of a given item. The best example of this is the diamond-water paradox. Water has more value in nature than diamonds. Water is more widely available than diamonds. So a single unit of diamonds has more value then a single unit of water based on the margins.