1. Rational Decision Making & Thinking at the Margin
How to make good decisions
(If only it were this simple…)

2. Breaking it down… Rational = thinking
Rational decision making =weighing the pros and cons before you make a decision
Marginal decision making = choosing to do one more or one less of something
Marginal cost = what you give up when you do one more or less of something
Marginal benefit = what you receive when you do one more or less of something

3. Rational Decision Making
Thinking at the margin:
deciding to use one extra (or less) unit of this resource 1
WHICH SHOULD LEAD TO 2
Rational Decision Making
WHICH OCCURS WHEN
marginal benefits exceed marginal costs 3
Benefit > Cost
Do it!
THEREFORE,
IF…
Cost > Benefit
Nooo! 4 5

4. Just 1 scoop?
2 scoops!
3 scoops…