Through an example as to how financial decisions are made easier with concepts of marginal utility and marginal cost. Introduction: Marginal utility and marginal cost are two very important economic concepts that are being taken into account when making decisions. Marginal utility is related to the satisfaction received via consuming a good or a service. Marginal cost is associated with the cost one has to bear in purchasing a good or a service.

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Chapter 1.3, Problem 2CC

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To Explain: Through an example as to how financial decisions are made easier with concepts of marginal utility and marginal cost.

Introduction:Marginal utility and marginal cost are two very important economic concepts that are being taken into account when making decisions. Marginal utility is related to the satisfaction received via consuming a good or a service. Marginal cost is associated with the cost one has to bear in purchasing a good or a service.

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