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Introduction to Microeconomics: Marginal Thinking

Geoff Riley

1st September 2026

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Economists assume that rational decisions are rarely absolute; instead, they are made at the margin. Marginal thinking involves evaluating the additional benefit of one more unit of an activity against its additional cost, while entirely ignoring past sunk costs. A consumer decides to buy a second cup of coffee only if the marginal utility of that specific cup exceeds its price. By focusing strictly on these incremental changes, individuals and businesses can optimize their choices and maximize their economic success.

Introduction to Microeconomics: Marginal Thinking
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Geoff Riley

Geoff Riley FRSA has been teaching Economics for nearly forty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD and Revision conferences in the UK and overseas.

@tutor2uGeoff

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