What is marginal thinking?

Marginal thinking is a decision-making approach that involves analyzing the costs and benefits of small changes or additions to a current situation. This concept is based on the economic principle of marginal analysis, which considers the incremental changes in inputs or outputs.

In marginal thinking, individuals evaluate the potential impact of making small adjustments to their current choices or behaviors. By examining the marginal costs and benefits of each decision, individuals can make more informed choices that maximize their overall well-being or utility.

Marginal thinking is especially useful in situations where resources are limited, as it allows individuals to prioritize their choices based on the incremental impact of each option. This approach can be applied in various aspects of life, including personal finance, career planning, and time management.

Overall, marginal thinking encourages individuals to consider the potential consequences of small changes in order to make more effective decisions and optimize their outcomes.