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6:19
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Marginal Revolution University
What Is Thinking on the Margin, and How Does It Solve the Sunk Cost Fallacy?
Thinking on the margin is one of the most fundamental concepts in economics–and a valuable everyday tool for making optimal decisions. For such an important idea, the meaning of marginal thinking is surprisingly simple: when faced with a decision, you should compare the marginal benefit of a possible action to its marginal cost. If the ...
129.2K views
Aug 1, 2023
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