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This Theory has been discussed in Public Finance under Dalton's principle of 'Maximum Social Advantage'. Optimum allocation of resources is that point where maximum marginal sacrifice of people is equal to maximum marginal benefits.
The society benefits from the business activities as people fulfill their needs and wants that are produced by the business organisations/factories and unemployed people find jobs.
because you need to focus on a need not a want and if the thing you want has an aditional cost your spending more money on the want that you could have spent on the need.
People make decisions at the margin; they strictly measure whether the incremental benefit from the next unit of allocation is greater or equal to the marginal cost. Since marginal cost is part of the profitability of an action, the cost affects whether the next unit's return is positive or not, so it helps to determine whether that actor takes that action or not.
The term marginal cost refers to the oppurtunity cost associated with producing one more additional unit of a good. Opportunity cost is a critical concept to economics - it refers to the value of the highest value alternative opportunity. For example, in examining the marginal cost of producing one more bushel of wheat, that number could be expressed as the dollar value of corn or other goods that could be produced in lieu of more wheat. Marginal benefit refers to what people are willing to give up in order to obtain one more unit of a good, while marginal cost refers to the value of what is given up in order to produce that additional unit. Additional units of a good should be produced as long as marginal benefit exceeds marginal cost. It would be inefficient to produce goods when the marginal benefit is less than the marginal cost. Therefore an efficient level of product is achieved when marginal benefit is equal to marginal cost.
As more people are hired, the marginal product of labor decreases because eventually having more and more employees will not make the company more productive.
Marginal groups are groups of people who are kept away from society. they are kept at borders and are not shown any kind of respect or concern
The difference is bicultural people will usually sleep with both people and sloth. And marginal people will only sleep with other people, but there is the occassional slip up with other animals such as snakes, which are opposite of sloths.
No, that would not be very equitable to those people living in marginal areas.
Greater PopulationMore MoneyMore people spendingMore employmentNew developmentNew transportationMore businessesNew communicationsIncrease in FarmingMulticulturalism
1) It will generate employment 2) It will contribut to the GDP of the country 3) It will provide services to the people and make them happy
heard the saying, "More trouble than its worth?" Rational people will make decisions based on if the marginal benefits exceed the marginal cost. If you buy a used car, and plan to spend $10,000, but the car is only priced at $6,000, would you still buy it if it needed $5,000 in repairs? of course not because 1) you are a rational thinker and 2) you would end up spending more than you planned to. :)