JC H1 and H2 Economics Study Notes – 2. Marginalist Principle
Marginalism is a theory that asserts individuals make decisions on the purchase and consumption of an additional unit of a good or a service based on the additional satisfaction / benefit / utility they will receive from it. In Economics for junior college (JC) pupils, we will invoke the marginalist principle to observe how individual units in a market or economy makes decisions on consumption and production.
In simple sense, any activity one carries pout, if the resultant benefit is larger than the corresponding costs of that activity, one ought to do more of it. This is an assumption, we make in A-Level Economics as well: the individual buyer or seller is a rational in decision making.