Marginal Analysis

Read this article to learn about one of the fundamental terms in economics: marginal analysis. Specifically, understand the concept of marginal benefit and marginal cost and what is meant in economics when we say that individuals make rational choices at the margin. Also, complete the problems in the "Try It" box and check your answers.

Try It

Question 1

The local farmer's market offers 1 bag of romaine lettuce for $5 or 2 bags for $8. What's the marginal cost of the second bag?

marginal cost = $____