THINKING AT THE MARGIN

WHAT IS IT

• Thinking with the idea to attain a high cost/benefit rate
• It is weighing out the cost and benefits as well as the sacrifices and efficiency of each decision
• It is crucial to any business or industry

BENEFITS

• Efficiency
• Money is saved
• Further profit from efficiency
• Efficient in all aspects

FOCUS

• The focus of thinking at the margin is to maximize efficiency
• Maximizing efficiency will maximize profit
• Maximizing profit will keep a business going

EXAMPLE 1

• You have lost $300
• You decide to go looking for it and find $200 in one hour
• You look and find $99 the next hour
• Thinking at the margin you decide that $1 is not worth the time and effort

EXAMPLE 2

• You are given an option of 2 jobs
• One pays better hourly but less hours while the other pays less but more hours
• Both will add up to be around the same per paycheck
• You pick the one with less hours to be more efficient

CONCLUSION

• Thinking at the margin is the most efficient economical way to go about things. It saves time and money as well as insures that a business will be more successful as opposed to not thinking at the margin.