What are some effective ways to communicate the benefits of marginal analysis to non-economists?

1 Use simple examples

One of the best ways to illustrate the logic of marginal analysis is to use simple and relatable examples from everyday life. For example, you can ask your audience to imagine that they are at a buffet restaurant and they have to decide how many plates of food to eat. The marginal cost of each plate is the same (the fixed price of the buffet), but the marginal benefit of each plate decreases as they get more full and satisfied. The optimal number of plates is the one where the marginal benefit equals the marginal cost, or where the additional satisfaction from one more plate is equal to the additional price. Any more plates would result in a net loss of utility, and any fewer plates would result in a net gain of utility. This example shows how marginal analysis can help you make rational choices that maximize your happiness.

2 Use analogies and metaphors

Another way to communicate the benefits of marginal analysis is to use analogies and metaphors that compare it to something that your audience already understands. For example, you can compare marginal analysis to a balance scale, where you weigh the pros and cons of each option on each side. The optimal choice is the one that balances the scale, or where the pros and cons are equal. Any choice that tips the scale too much to one side or the other would result in a suboptimal outcome. This analogy shows how marginal analysis can help you find the equilibrium point that maximizes your net benefit.

3 Use visuals and charts

A third way to communicate the benefits of marginal analysis is to use visuals and charts that simplify and summarize the key information and relationships. For example, you can use a table that shows the marginal costs and benefits of different options, and highlight the one that maximizes the net benefit. Or you can use a graph that plots the marginal cost and benefit curves, and show the point where they intersect as the optimal choice. These visuals and charts can help your audience see the patterns and trends of marginal analysis, and how it can help you identify the best option among many.

4 Use applications and scenarios

A fourth way to communicate the benefits of marginal analysis is to use applications and scenarios that demonstrate how it can be used in real-world situations and problems. For example, you can use a case study that shows how a business used marginal analysis to determine the optimal price and quantity of a product, based on the marginal revenue and marginal cost of producing and selling it. Or you can use a hypothetical scenario that shows how a consumer used marginal analysis to decide how much to spend on a vacation, based on the marginal utility and marginal expense of different activities and amenities. These applications and scenarios can help your audience see the relevance and usefulness of marginal analysis, and how it can help them achieve their goals and solve their challenges.

5 Use feedback and questions

A fifth way to communicate the benefits of marginal analysis is to use feedback and questions that engage your audience and check their understanding and interest. For example, you can ask your audience to share their own examples of marginal analysis, or to apply it to a new situation or problem. Or you can ask them to give you feedback on your explanation, or to ask you any questions or doubts they may have. These feedback and questions can help you assess how well your audience grasps the concept of marginal analysis, and how much they value its benefits. They can also help you clarify any confusion or misconception, and reinforce the main points and takeaways.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?