2. Effective decision making Few choices are all or nothing decisions Most choices involve doing a little more or less of something EPF.1c Decision Making 2
3. What is marginal benefit? Essential question: 3 EPF.1c Decision Making
4. What is marginal benefit? The change in total benefit resulting from an action 4 EPF.1c Decision Making
5. What is marginal cost? Essential question: 5 EPF.1c Decision Making
6. What is marginal cost? The change in total cost resulting from an action EPF.1c Decision Making 6
7. Essential question: How can marginal benefit and marginal cost be used to improve decision making? 7 EPF.1c Decision Making
8. How can marginal benefits and costs be used to improve decision making? As long as the marginal benefit of an activity exceeds the marginal cost, people are better off doing more of it. When the marginal cost exceeds the marginal benefit, they are better off doing less of it. EPF.1c Decision Making 8
9. Example What is the marginal benefit of one more hour of exercise? Suppose the marginal cost is one more hour of study? EPF.1c Decision Making 9
10. Decision Making To determine the best level of consumption of a product or whether to participate in an activity, people must compare the additional benefits with the additional costs of consuming or participating a little more or a little less EPF.1c Decision Making 10
