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How should I use marginal thinking in my summer lawn-cutting business?
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Suppose that you advertise that you will mow and trim each of the yards in your neighborhood for $25. The yards are all roughly the same size, but the amount grassy area varies significantly. You can mow and trim some of the yards in about an hour but other yards take two or more hours to complete. As customers call and request your services you should try to determine which yards you can complete the quickest. If you line up 8 properties that each take about an hour to complete you can make $200 a day. If your customers largely consist of properties that take two hours a day to complete your income is $100 a day. Thinking at the margin, in this case, means that you evaluate the potential income you can make from mowing each yard and select the jobs can that can be done in the least amount of time.
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