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tekilochka [14]
3 years ago
8

Compare Marginal Costs & Marginal benefits in a choice you made.

Social Studies
1 answer:
wariber [46]3 years ago
7 0

<u>Marginal Costs & Marginal benefits in a choice you made.</u>

Assume that I want to buy an ornament for hands. I spend  $500 for purchasing an ornament. When I was supposed to see another I wish to buy that. But spending  again for the ornaments also not a good idea. I am also not willing in spending $500 for the ornament. So, I decided to go for an ornament that costed only $250.  No, my marginal benefit get decreased from $500 to $250. When I decided to go fro the second one or more than one of same good my marginal benefits decrease.

Marginal cost is something that changes in a smaller range in the production of one additional unit. For example I decide to manufacture 500 pens. i need raw materials for the production and a building and machine for production. The change in the cost or expenses that happens when I decide to produce 600 pens is the marginal cost.

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