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Give a recent example where you had to evaluate the incremental costs and benefits of different options in order to make a decision

Economics Dec 15, 2020

Give a recent example where you had to evaluate the incremental costs and benefits of different options in order to make a decision.

Expert Solution

An example of marginal analysis is determining how many times to go to the beach in a summer. For the most part, the decision isn't where or not to go to the beach every day or not at all. Instead, most people determine how many days in the summer they should go. When they do this, they look at the marginal cost and marginal benefit of each beach day. For each day, if the marginal benefit of going to the beach is greater than the marginal cost, you will go that day. If, on the other hand, the marginal benefit is less than the marginal cost, you won't go. The reason why people visit the beach different numbers of days each summer is because everyone has different preferences, leading to different marginal benefits and decisions based on these benefits versus costs.

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