00:01
So here we're talking about the principle of efficiency, right? making good decisions.
00:04
And we want to think about what this person should do.
00:08
We are comparing marginal cost and marginal benefit, right? so the marginal cost or benefit is the cost or benefit from doing a little more or less of the action.
00:35
Now, that is a fuzzy definition, but i think it's a pretty accurate definition, right? we're not thinking about closing down the entire restaurant industry.
00:49
We're thinking about closing down one or more restaurants.
00:53
So the first one, let's go through each of these.
00:57
The first one says, if the marginal benefit is less than the marginal cost, this, close.
01:05
This is absolutely correct.
01:07
I love this answer, right? because this says that it's not worth it.
01:12
The marginal benefit is lower than the cost.
01:14
So the benefits are lower than the cost.
01:18
Absolutely.
01:18
100%...