What does it mean to "think at the margin" in economic decision-making?

To "think at the margin" in economic decision-making refers to the practice of evaluating the additional benefit or cost associated with producing or consuming one more unit of a good or service. This approach involves focusing on the incremental changes that result from a decision rather than assessing the total outcomes.

For example, a business considering whether to produce one more unit of a product would look at the additional revenue that unit would generate (the marginal benefit) compared to the additional costs incurred (the marginal cost). If the marginal benefit exceeds the marginal cost, it would be advisable to proceed with the decision. This method helps individuals and firms make informed choices that maximize their utility or profit by carefully weighing the impact of small changes.

In contrast, considering past economic trends, reviewing total costs, or analyzing government policies does not directly relate to the concept of marginal thinking, as these approaches involve broader evaluations rather than the specific focus on the incremental aspects of decision-making.