A Marginal Economy?

A marginal economy refers to a situation where decisions about producing or consuming additional goods or services are made based on the extra benefit (marginal benefit) versus the extra cost (marginal cost). In such an economy, resources are allocated efficiently when each decision considers these small changes. This concept helps explain how individuals and firms optimize their actions to maximize satisfaction or profit without waste. Essentially, a marginal economy focuses on the incremental changes associated with economic choices, ensuring that resources are used in ways that produce the most value for society.