Thinking on the margin is one of the most fundamental concepts in economics–and a valuable everyday tool for making optimal decisions. For such an important idea, the meaning of marginal thinking is surprisingly simple: when faced with a decision, you should compare the marginal benefit of a possible action to its marginal cost. If the marginal benefit is greater than the marginal cost, do it!
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International Economics: IB Economics
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A collection of articles relating to the 'international' elements of Economics and relating to IB, Pre-U and A-Level Economics.
Curated by
Graham Watson
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Scoop.it!
The restructuring package comes as the global airline industry has been hit hard by the pandemic.
Graham Watson's insight:
News of another substantial bailout in the aviation sector, with Cathay Pacific the recipeint of a sizeable chunk of state aid from the Hong Kong government, $5bn.
It will be interesting to see how this pans out - will all flagship carriers survive? And to what extent will government's fall foul of the sunk cost fallacy? 
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A typically excellent Marginal Revolution University clip looking at one of the most basic economic principles, the marginal principle, which is an essential part of thinking like an economist.
This then segues into a consideration of the 'sunk cost fallacy' applying the marginal principle - showing how people can fall foul of it when running a business.