Question

Human and institutional behaviour can be modeled as if they think or analyze at the "margin", or as if they use "Marginal Analysis".

a) Identify an event that you have observed in the news, history, or your life that might be explained with Marginal Analysis

Your answer needs to provide at least two paragraphs.
The first paragraph discusses your observation.
The second paragraph explains how you use Marginal Analysis.
Please make sure to list the benefits and costs.

Answer all the questions in well developed paragraphs. The paragraphs should be at least five or six sentences long, and they should clearly include a topic sentence.

Answer 1

marginal analysis can be defined by the one when you compare the advantages or benefits obtained by doing an activity and the expenses occurred by the same activity.Marginal analysis is the one which is used on our daily basis.for example, as a student i used to go to college on bus, so i have to pay daily. in this case i can opt for 2 things.one is the daily pass with which i can travel n number of times in a month and the other option is to pay the bus whenever i go to college. if you compare these two, both have pros and cons.

if i opt for monthly pass, i dont have to wait in line to buy pass each time but other aspect if i dont use the pass as i thought,i would lose money.with marginal analysis, it give the flexibilty to individual to determine the advantages and disadvantages of the certain action whch include like producing and consuming more and also in the overall costs and extent of usage.the imporatance of marginal analysis has been rapidly increasing as it helps the individual to expan business,for instance, if you consider a product manufacturer he can utilise the marginal analysis to determine what would be the necessary and costs and benefits will be if he is certain to increase his production of goods or to add new products to his list.