Marginal Cost and Benefit

Have you ever thought about how a business makes decisions about such things as how much product to provide, or how many employees to have? This lesson will teach you about some basic economic principles that affect these decisions businesses make. When should we add another employee? When do we have enough? How much should we be producing? What are the prices we need to charge to make a profit? Much of this is determined by the economic principles of marginal costs, marginal benefits and the law of diminishing marginal returns.

Marginal Cost and Benefit

Watch the video about marginal costs and benefits.

Complete the marginal cost and benefits activity below.

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