What are the benefits and costs of Marginalism

What are the benefits and costs of Marginalism?

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1. Most decisions concern a change in current conditions; therefore the economic perspective is largely focused on marginal analysis.

2. Each option considered weighs the marginal benefit against the marginal cost.

3. Whether the decision is personal or one made by business or government, the principle is the same.

4. The marginal cost of an action should not exceed its marginal benefits.

5. There is “no free lunch” and there can be “too much of a good thing.”

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