Epf1c decision making
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The document discusses marginal costs and benefits and how they can be used for decision making. It defines marginal benefit as the change in total benefit from an action and marginal cost as the change in total cost from an action. It states that people are better off doing more of an activity as long as the marginal benefit exceeds the marginal cost, and better off doing less of it when the marginal cost exceeds the marginal benefit. An example compares the marginal benefit of exercise to the marginal cost of reduced study time.
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Epf1c decision making
- 1. Basic Economic StructuresEPF1C. Decision Making:Costs vs. benefits
- 2. Effective decision makingFew choices are all or nothing decisionsMost choices involve doing a little more or less of somethingEPF.1c Decision Making2
- 3. What is marginal benefit?Essential question:3EPF.1c Decision Making
- 4. What is marginal benefit?The change in total benefit resulting from an action4EPF.1c Decision Making
- 5. What is marginal cost?Essential question:5EPF.1c Decision Making
- 6. What is marginal cost?The change in total cost resulting from an actionEPF.1c Decision Making6
- 7. Essential question:How can marginal benefit and marginal cost be used to improve decision making?7EPF.1c Decision Making
- 8. How can marginal benefits and costs be used to improve decision making?As long as the marginal benefit of an activity exceeds the marginal cost, people are better off doing more of it.When the marginal cost exceeds the marginal benefit, they are better off doing less of it.EPF.1c Decision Making8
- 9. ExampleWhat is the marginal benefit of one more hour of exercise? Suppose the marginal cost is one more hour of study?EPF.1c Decision Making9
- 10. Decision MakingTo determine the best level of consumption of a product or whether to participate in an activity, people must compare the additional benefits with the additional costs of consuming or participating a little more or a little lessEPF.1c Decision Making10