Question

Definition: Marginal is additional or incremental (amount of increase) or decremental (amount of decrease). Should I do (choose) activity x? MC(x) = the additional costs of doing x MB(x) = the additional benefits of doing x Rule: If Expected MB(x) > Expected MC(x), do x; otherwise don't. Application: Would an employer ever hire anyone if the expected additional cost of his or her employment were greater than the expected marginal/additional benefit? Of course not, to do so would be irrational. Assumptions: In economics, we assume rationality. No one would intentionally harm themselves.

How many dates show you go on to decide when to marry someone? Does the 18th date provide as much additional information as the 1st date? (Remember diminishing marginal returns.) How would you use this concept to determine when to get married?

Answer 1

MB(date) will reduce with increase in number of dates.

MC(date) will increase with increase in number of dates.

So, it is important to decide a point where MB(date) = MC(date).

Because after this point MB(date) < MC(date), so it does not make sense to date after this point.

How many dates show you go on to decide when to marry someone?

Number of dates at which MB(date) = MC(date).

Does the 18th date provide as much additional information as the 1st date?

NO. MB(date) will reduce with increase in number of dates.

How would you use this concept to determine when to get married?

MB(date) could be the positive additional information due to this new date.

MC(date) could be the negative additional information due to this new date.

Now, say that MB(date) = MC(date) is maximum at 10th date (for example)

Then "sum of MB(date) - MC(date)" should be compared between different people.

The person having highest "sum of MB(date) - MC(date)" should be given preference over others.

This is how this concept can be used to determine when to get married and whom to get married.