Compare and Contrast - Marginal Analysis & Monopoly Profit
Cost vs benefit can be applied to any situation in life. Even the most mundane seemingly unimportant decisions have costs and benefits, the evaluation of these factors is marginal analysis. The primary difference between marginal analysis and monopoly profit analysis is the type of market structure being analyzed, otherwise these two examples are nearly identical. The similarities between how firms function and how individuals operate are strikingly similar. These two illustrations demonstrate those similarities.
Cost vs benefit can be applied to any situation in life. Even the most mundane seemingly unimportant decisions have costs and benefits, the evaluation of these factors is marginal analysis. The primary difference between marginal analysis and monopoly profit analysis is the type of market structure being analyzed, otherwise these two examples are nearly identical. The similarities between how firms function and how individuals operate are strikingly similar. These two illustrations demonstrate those similarities.
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Real Life Applicatoin - Monopoly Market Structure
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Reflection
The really exciting part about microeconomics is that it parallels daily life. Nearly any theory can be applied directly to a personal situation which makes the real-world comparisons especially helpful in learning. This class has been critical in understanding what is going on in the world from day to day and I will continue to use the knowledge from microeconomics to analyze the events which impact me on a daily basis.