Decision making by individuals and firms - Making how much decisions: the role of Marginal Analysis
4 important questions on Decision making by individuals and firms - Making how much decisions: the role of Marginal Analysis
We understand how much decisions by using? What is it?
Why is called marginal analysis "margin"
How do we describe the decreasing marginal benefit of each unit that is produced
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What is the decreasing marginal benefit curve? What is the shape and what are the curves?
- It is a downward sloping curve, the hieght of each shaded bar is decreasing in height, and looking at the midpoint of the top of each bar we can see that the marginal benefit is decreasing
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