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Economics

Marginal Analysis

Quick fact

The word 'marginal' in economics does not mean 'unimportant'; it means 'the next unit'—the additional benefit or cost from one more cookie, one more hour of study, or one more production unit.

Why this is interesting

You’re at a buffet and you’ve already had three slices of pizza. Should you go for a fourth? That tiny decision—one more bite—is the essence of marginal analysis.