Opportunity Cost
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marginal benefit
the extra benefit of adding one unit
marginal cost
the extra cost of adding one unit
trade-off
the act of giving up one benefit in order to gain another, greater benefit
opportunity cost
the most desirable alternative given up as the result of a decision
guns or butter
the idea that a country that decides to produce more military goods has fewer resources to produce consumer goods and vice versa
thinking at the margin
the process of deciding whether to do or use one additional unit of some resource
cost/benefit analysis
a decision-making process in which you compare what you will sacrifice and gain by a specific action
