Chapter 1 Ten Principles #3 Margins

by Elson Blunt on Jun 17, 2014

Thinking at the margins is rational. Compare marginal costs to marginal benefits to decide whether any trade-off is worth it. Beware of the Fallacy of Sunk Costs: according to Behavioral Economists, we might be tempted to look at TOTAL costs and benefits, a mistake!

  • image/svg+xml
    Share

Permalink

Embed

Share On

Remind
Google Classroom