A brief introduction to marginal analysis for the micro-economics principles course

Mark Burkey

MPRA Paper from University Library of Munich, Germany

Abstract: This brief note provides a simple, yet powerful example of how the marginal cost/marginal benefit principle can be used in everyday life. Using the decision of the optimal choice of speed on the highway, this note was developed for use as one of the first readings in an introductory microeconomics course. It is clear in this demonstration that marginal cost is increasing, while marginal benefit is decreasing, and how the intersection of these two curves shows the optimal choice. In addition, shifts in the curves can easily be demonstrated as an introduction to supply and demand.

Keywords: marginal analysis; economic education (search for similar items in EconPapers)
JEL-codes: A2 (search for similar items in EconPapers)
Date: 2008
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Published in JOURNAL OF ECONOMICS AND FINANCE EDUCATION 2.7(2008): pp. 1-3

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:36230

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