Friday, 31 Oct 2025
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
logo logo
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
  • 🔥
  • Trump
  • VIDEO
  • House
  • White
  • ScienceAlert
  • Trumps
  • Watch
  • man
  • Health
  • Season
Font ResizerAa
American FocusAmerican Focus
Search
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
Follow US
© 2024 americanfocus.online – All Rights Reserved.
American Focus > Blog > Economy > Averages, Margins, and Memes – Econlib
Economy

Averages, Margins, and Memes – Econlib

Last updated: March 14, 2025 7:18 am
Share
Averages, Margins, and Memes – Econlib
SHARE

Economics often dances to the tune of counterintuitiveness, while simultaneously serving as a mirror to human behavior. This paradox suggests that the foundational concepts of economics should, in theory, be quite accessible—provided you possess the requisite humanity.

A pivotal concept in economics is the idea of the margin—how decisions are made at the margin and the implications of marginal versus average costs. Yet, many find it challenging to grasp the nuances of decision-making at the margin. Some educators resort to mathematical illustrations, such as presenting an equation for total cost and explaining that marginal cost is its first derivative. For those mathematically inclined, this approach can yield neat, precise answers suitable for standardized testing. However, one can easily excel in these quantitative assessments without truly internalizing the critical notion of marginal decision-making.

But if humans genuinely make decisions at the margin, shouldn’t we be able to clarify this concept by pointing to relatable examples? Indeed, we can. Take, for example, a popular meme. If you find humor in its message, you likely already grasp the distinction between average and marginal costs, along with the essence of margin-based decision-making:

Assuming you’re not still in your toddler years, this image will resonate with you. However, for the sake of clarity, let’s dissect the humor.

Shaving cartridges are notoriously pricey—let’s say a pack costs $20, making the average cost per cartridge $5. As you use a razor, it dulls, diminishing its effectiveness and comfort. After five shaves, you might find yourself swapping out the first cartridge for a fresh one. Since you’ve already paid for the pack upfront, the marginal cost of replacing the first cartridge now approaches zero, while the marginal benefit is high. This pattern continues with each successive cartridge until you reach the fourth. At this point, switching to a new cartridge incurs the full cost of a new pack. Consequently, many users extend the life of the fourth cartridge much longer than the preceding ones. Despite all four cartridges sharing the same average cost, their marginal costs diverge significantly when it comes to usage and disposal. This discrepancy highlights the very behavior illustrated in the meme.

See also  Jim Cramer Says He’s ‘Kind of Wary’ of Maplebear Inc. (CART)

Regrettably, some students glide through economics programs, achieving top grades through sheer mathematical prowess, yet fail to absorb the fundamental economic insights exemplified by this simple meme. While mathematics holds value in economics, solving equations does not equate to genuine economic analysis.

There’s an adage that suggests if you can’t convey a concept in terms a child could grasp, you don’t fully comprehend it yourself. Perhaps a parallel exists here: if you can craft a straightforward meme that elucidates the workings of indifference curves, it signifies a deeper understanding than merely calculating partial derivatives or referencing budget constraints. Anyone with a decent grasp of math can tackle the latter, particularly in an exam setting, but only someone who has truly internalized the concepts can create the former.

TAGGED:AveragesEconlibmarginsMemes
Share This Article
Twitter Email Copy Link Print
Previous Article RTD riders call for help thousands of times each month RTD riders call for help thousands of times each month
Next Article Music Diva Beyoncé Facing Fan Revolt Over Ticket Prices Music Diva Beyoncé Facing Fan Revolt Over Ticket Prices
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Posts

Optimize your spring cleaning with these deep deals on Ninja-Shark vacuums and floor cleaners

The Shark Matrix Robot Vacuum is perfect for pet owners, as it is specifically designed…

April 21, 2025

AO Yes Shanghai Fall 2025 Collection

Austin Wang and Yansong Liu, the dynamic duo behind fashion brand Ao Yes, kicked off…

April 1, 2025

Comedian Tim Dillon: The Media Has Never Apologized for the Russia Collusion Hoax or Even Admitted They Were Wrong (VIDEO) |

Have you observed the curious silence surrounding the topic of Russian collusion in the media…

June 4, 2025

Why a Peacemaker season 3 should address these key storylines

Image: © Home Box Office, Inc. All rights reserved. HBO® and all associated programs belong…

October 14, 2025

15 Best Makeup Removers for All Skin Types

The balm-to-oil formula melts away makeup and impurities while nourishing and hydrating the skin with…

November 2, 2024

You Might Also Like

Shake Shack returns to profit in Q3 2025
Economy

Shake Shack returns to profit in Q3 2025

October 31, 2025
Fresnillo signs agreement to acquire Probe Gold for 8m
Economy

Fresnillo signs agreement to acquire Probe Gold for $558m

October 31, 2025
Market analysts react to Trump-Xi meet
Economy

Market analysts react to Trump-Xi meet

October 31, 2025
29 truck carrier files Chapter 11
Economy

29 truck carrier files Chapter 11

October 31, 2025
logo logo
Facebook Twitter Youtube

About US


Explore global affairs, political insights, and linguistic origins. Stay informed with our comprehensive coverage of world news, politics, and Lifestyle.

Top Categories
  • Crime
  • Environment
  • Sports
  • Tech and Science
Usefull Links
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA

© 2024 americanfocus.online –  All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?