The Concept of Marginal Thinking

Life is about decision...One concept that you have to get used it is thinking marginally. This what are economists always put in practice. Marginal analysis is the application of marginal thinking to a particular problem. This sort of marginal thinking allows you to make choices that will maximize the value of any resource you have, including your time.

Let's take a look on this example...Waiting in line at JPJ or Post Office to renew your driver's license. Does it matter how long you have waited in line? That's a sunk cost. What is actually the sunk costs? The sunk costs are those that are affected by the decision at hand. You... of course ... can not change the fact that you have already waited in line, just say, for almost one hour. The only thing that you can do is wheter you wait in line any longer or leave, only come back another day. Your decision to leave or to stay should be based on your prediction of how many more times it will take before you reach your turn compared to the cost in time and effort of returning back to the JPJ or Post Office and waiting in line again. If you new for certain, for example, that a particular time when you could come back you would have to wait five minutes rather than you continued waited in line for another half an hour, then should leave!