The Comparison of Cost against the Benefit - Essay Example

Ancient people were not much concerned with individual benefits. They worked there for a common objective irrespective of individual gains. For example, ancient people converted forests into suitable land for cultivation. They made a lot of roads and other common things required for social development. No agency or government funded their efforts or government. But in a rational world like the current one people are true professionals and they will think of the cheapest and most effective ways to maximize their benefits rather than the benefits of the society. “The marginal cost of change is the additional cost caused by the change.

The marginal approach suggests that one should make all the changes that increase benefits more than they increase costs (or that reduce costs by more than they reduce benefits). When all these changes have been made, one will find oneself at a point for which marginal costs equal marginal benefits. This rule for finding the best level of an activity is called the maximization principle.” (Schenk, 2008) for example an entrepreneur will make some changes to his product only if he feels that such changes will increase the product sale and thereby he can increase profit.

Most of the Chinese products in the market are supposed to be of cheap quality. Still, most of their products Benefit prin, couple 2are putting immense fight with thei2 arempetitorsan regarding the price. People are well aware that these Chinese products are of cheap quality, but still, they will purchase it because of the eir utility against the price. “The Principle of Benefit Maximization dictates that whenever one is faced with a choice, the best decision is the one that results in the best or greatest benefit for the most people.

” (Kallio & Brenda R, 2003) For example, consider David Beckham is out of form and England is playing against Brazil in a football match at Beckham’s home ground in England. Most of the coaches in such a situation will give Beckham an opportunity to play allowing Beckhamuch, to satisfy the spectators. Such a move can satisfy the majority of the Beckham fans in his home ground. The recent 1-2-3 nuclear agreement reached between India and America is another example of the benefit principle.

Still, a of the debates are going on about who got the maximum benefits out of this agreement; India or America. The Indian government argues that they got more benefits than the cost given to America for reaching this agreement. At the same time America, also argues the same thing. They think that their nuclear technology and equipment can have a great market equipment hence to stabilize their current distracted economy, such an agreement is essential.