What does thinking at the margin mean? Also what is the purpose of a decision grid?
http://economics.about.com/od/informationforbeginners/a/marginal_analysis.htm
http://www.mindtools.com/pages/article/newTED_03.htm
Thank you!!!
You're welcome.
(Google is very helpful.)
Haha I know! But it seems that I never type in the right stuff that'll come with answers I can understand (: This website is so much more helpful.
Thanks.
To find those sites, I just copied and pasted these words in the Google search box.
thinking at the margin
purpose of a decision grid
I'll definitely try getting straight to the point now (:
Thinking at the margin refers to making decisions by considering the additional or incremental costs and benefits of a specific action. It involves analyzing the consequences of making a small change or adjustment in a current situation. In other words, it focuses on the impact of individual choices on the overall outcome.
When thinking at the margin, one assesses whether the additional benefit gained from a decision outweighs its additional cost. This approach allows individuals and businesses to make more informed decisions that optimize resources and maximize utility. It is a fundamental concept in economics and can be applied to various scenarios, such as production decisions, consumption choices, and policy-making.
Regarding the purpose of a decision grid, it is a tool used to organize and evaluate options when making decisions. It helps individuals or teams systematically compare different alternatives based on specific factors or criteria. The grid typically consists of rows representing the options being considered and columns representing the evaluation criteria.
By assigning weights or scores to each option based on the criteria, decision-makers can objectively compare and rank the alternatives. This visual representation allows for a clearer understanding of the trade-offs and implications of each option, aiding in the decision-making process. Decision grids help individuals and teams to ensure that all relevant factors have been considered and to make more rational and informed choices.