Is the definition of thinking at the margin basically saying if you don't have any specific numbers or the use of the one additional unit in the situation at hand, then it wouldn't be thinking at the margin?
Actually, the concept of thinking at the margin doesn't necessarily require specific numbers or the use of one additional unit. Thinking at the margin refers to the process of making decisions by evaluating the benefits and costs of incremental changes. It focuses on analyzing the effects of small changes rather than considering the whole picture.
To understand thinking at the margin, it is helpful to consider an example. Let's say you are a business owner trying to determine the optimal price for your product. Instead of considering the overall pricing strategy or a price change for all units, thinking at the margin involves analyzing the impact of increasing or decreasing the price by a small amount on one additional unit. For example, if you decrease the price of one additional unit, will it bring in more customers and generate more revenue? Will it result in potential losses or reduced profitability?
In essence, thinking at the margin involves evaluating the incremental benefits and costs of small changes rather than looking at the whole situation or making broad assumptions. It's about considering the effects of each additional unit or small adjustment and making decisions accordingly.