what does it mean to " think at margin"?

Answer 1

Basically a "margin" is the difference between cost and selling price of a product. So to "think at margin" is saying think about profit.

If you were a manager of a store, your goal is to A. make margin (which means you are above cost with some profit). Or B. (Which we all strive for) Come above margin which is basically bonus.

To think margin also influences how low you can price and item or products. You never want to price below margin because you take a loss. The margin is selling something for more than what you payed for it. You always want to stay above margin in business.

That's a small take on "thinking at margin", you could take classes and lectures for days on it.

Good luck

Answer 2

I am an economist and the above answer is incorrect.

To illustrate, imagine I held up a two dollar bill in front of a class and offered to trade any bill for it, one bill for one bill. Someone holds up a $1 bill and I trade it.

Then I hold up my $1 bill and offer to trade it, one bill for one bill, hoping for a $50 or a $100.

Neither of those choices were decisions, both are so obvious that no one would refuse the $2 and no one would offer the $100.

A decision at the margin is a decision which is nearly $1 for $1. It is one you must struggle over because it is not clear what the correct choice is. Ideally you will engage in transactions up until the point where your opportunity costs equal your opportunity benefits. The small added benefit above the margin is your goal, but you will trade until your margin of difference is $0, then you stop.

If you think at the margin, then you are looking at how whole systems change because of the tough choices at the intersection of opportunity and cost.