Question

When making a decision "at the margin," you will consider undertaking more of an activity if the marginal benefit from it is __________ the marginal cost?

Answer 1

From an economist's perspective, making choices involves making decisions 'at the margin' -- that is, making decisions based on small changes in resources:

How should I spend the next hour?
How should I spend the next dollar?
In fact, economist Greg Mankiw lists under the "10 principles of economics" in his popular economics textbook the notion that "rational people think at the margin." On the surface, this seems like a strange way of considering the choices made by people and firms.