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Chapter 1 - Coggle Diagram

- - - - Marginal Net Benefits: MNB(Q) the change in net benefits that arise from a one-unit change in Q
        
        Marginal Principle: MB = MC at the level of Q that maximized net benefits
        
        MNB = 0
  - - - e.g.: maybe the revenue a firm generates from producing Q units of output
  - - - The slope of the total cost curve at a given Q is the marginal cost of that level of Q
      - The slope of the total net benefit curve at a given Q is the marginal net benefit of that level of Q
      - The slope of the total benefit curve at a given Q is the marginal benefit of that level of Q
  - - - The additional revenues that stem from a yes-or-no decision
    - - The additional costs that stem from a yes-or-no decision
    - - "Thumbs up"
        
        MB>MC
      - "Thumbs down"
        
        MB<MC
- - - - Total Revenue - Explicit Cost
  - - - Total Revenue - Explicit Cost - Inplicit Cost
      - Opportunity Cost: The explicit cost of a resource plus the implicit cost of giving up its best alternative
        
        generally is higher than accounting costs