Difference between revisions of "Marginal Analysis"
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| − | Marginal Analysis is the study of | + | Marginal Analysis is the study of economic decisions with respect to marginal, not total or average variables. The implied theory is that decisions are typically made "on the margin," or with an eye towards the next unit of cost, benefit, input, or output. In mathematical economics, marginal analysis typically implies analyzing the first derivatives of utility functions or production functions. |
[[Category:Economics]] | [[Category:Economics]] | ||
Revision as of 03:00, March 29, 2007
Marginal Analysis is the study of economic decisions with respect to marginal, not total or average variables. The implied theory is that decisions are typically made "on the margin," or with an eye towards the next unit of cost, benefit, input, or output. In mathematical economics, marginal analysis typically implies analyzing the first derivatives of utility functions or production functions.