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DISCUSSION 2

Recent Decisions Weighed Marginal Cost and Marginal Benefit

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Institutional Affiliation

Weighted marginal cost is the cost incurred to raise one additional dollar for each of these different forms of capital. This implies that one must consider the available alternatives that bring the best out of the current usable opportunity. One has to consider the available opportunity with the most significant weight compared to the other alternatives.

Marginal benefit refers to the maximum amount that one is able or willing to pay for a given service or product. In marginal benefit, the extra price a consumer is willing to pay is likely to be motivated by the additional satisfaction one derives from a given product or service.

One example when I dealt with the weighted marginal cost is when I go to the school canteen to buy snacks. When buying snacks, I have to decide on the units that I can purchase depending on several factors. When I cannot purchase multiple different snacks, I have to buy snacks that will meet my immediate need and forego those that do not meet my immediate needs.

Another example is when I need to increase my study hours when the end-of-semester exams are close. In this instance, the marginal cost I will incur is the leisure time consumed by increased study hours, but the marginal benefit is the thorough revision I will do.