What Is Marginal Demand?

Marginal utility, sometimes called marginal contribution, is the primary and near-effect of social perception. The German psychologist Ebbinghaus studied the memorizing materials and found that they were not affected by the proactive inhibition and the inverted inhibition respectively. People remember the content at the beginning and the end of it more firmly and it is also applicable to the study of the laws of social perception process in social psychology. ^[1]

It means that when other inputs are fixed, if one input is continuously increased, the added output or income will gradually decrease. In other words, when the increased input exceeds a certain level, the output of each additional unit input will decrease.

The popular explanation is:

we

Marginal contribution analysis is based on the habit analysis of costs, and based on the relatively constant characteristics of fixed costs in the relevant range, this part of cost is not considered in decision analysis, and only the marginal contribution created by the product is analyzed. , Determine the optimal analysis method by comparing the marginal contribution of each scheme.

1. Decision analysis for developing new products

The previous description is just to use the company's surplus production capacity analysis to study which new product is more suitable for development. As for the decision to increase investment in fixed assets and expand production capacity to develop new products, it is a long-term investment decision.

2. Decision analysis of whether to accept additional orders

Decisions in this regard can be made using differential analysis or marginal contribution analysis. In principle, as long as the price offered by the other customer is slightly higher than the unit variable cost and can compensate the exclusive cost, it can be accepted.

3. Decision analysis of whether the loss-making products are discontinued or switched over

Marginal effects are widely used, for example in economics.

Marginal Effect Technology

For example, at the beginning, you can get 2 yuan for 1 yuan. With the continuous expansion of the input scale, to a certain extent, when the same yuan is invested, the output may only be 1.2 yuan, even only 1 yuan, 0.8 yuan, 0.6 yuan ... less and less.

In a sense, the marginal effect breaks people's original thinking, which is the usual mode of "input-output".

When it is "marginal" somewhere, this model fails. Since it is called "marginal effect", it means that it can summarize some phenomena in life, not just in the field of economics.

In order to solve the problem of astronauts writing under the condition of weightlessness in space, the United States invested hundreds of millions of dollars and finally developed a special ballpoint pen. The former Soviet Union cleverly solved the problem without investing: let the astronauts take a pencil to heaven. (Of course, this is just a joke story. In fact, pencils are not ordinary pencils but special pencils. This story is only used to compare some of the common marginal effects in life.)

If the solution of the problem is an output, the R & D and time of the intermediate investment are invested.

From the input-output model, the "marginal effect" is seen in the above story.

In the era of rapid development of science and technology, under the policy of rejuvenating the country through science and education, and under the guidance of science and technology as a productivity theory, if we enter the "scientific theory" thinking mode, it is very likely that we will hit the "marginal effect" south wall in the end. .

Therefore, technology is not the more the better, the higher the better, the more important is its practicality and pertinence in solving practical problems. ^[4]

Marginal Effect Education

In the process of education, as the intensity of the class teacher s educational investment increases, the effect also increases. When the input increases to a certain amount, the educational effect no longer increases positively; if it continues to be strengthened, the educational effect decreases significantly and appears negative. increase. Why is that? So I consulted books about class management and understood that this phenomenon is a "marginal effect" in education. In any educational activity, the initial stage has the highest effect of receiving relevant information, and then gradually decreases over time, and finally reaches a saturation point. Beyond this point, the object of education will have an attitude of resistance.

Therefore, we must seize the moment when educating students. First of all, learn to "send charcoal in the snow." This requires the class teacher to go deep into the students, understand the needs and problems of the students, and give a helping hand in time to troubleshoot their difficulties, which can often have an educational effect of doing more with less. "Icing on the cake" is easy and beautiful, but "sending charcoal in the snow" is more urgent and more important. Secondly, learn to "appropriately cool down" and combine timely evaluation with delayed evaluation. In class management, different problems that arise among students should be evaluated in a timely or delayed manner to avoid "diminishing marginal effects." For example, when treating some students who have made mistakes, some class teachers are often motivated, and students are immediately called for reprimand, sometimes it is counterproductive. We might as well adopt the method of delaying the evaluation and talking with the students after the cold, sometimes the effect will be better. It's not too late to make up for the dead sheep.

Education is a creative work. As a class teacher, you must regularly reflect on education from education, learn from the experience of others, and manage your own classes so as to achieve personal growth with students.

Marginal Effect Tourism

Capital Marginal Effect of Climbing Tourism Gives Full Play

Traditional travel agencies have begun to extend to the upstream and downstream of the tourism industry chain, maximizing the "marginal effect". Private enterprises and foreign capital have begun to "enclose" scenic spots and have started new experiments in the "large tourism community". Real estate capital, which has many connections but is rich in wealth, continues to increase its interest in tourism, playing the combination of house and tourism under the banner of "tourism real estate". Traveling has never been more appetizing for princes like this.

Earlier on March 20, 2007, Guangdong China Travel Service had just won a two-year ticket management right for Danxia Mountain, a world-famous mountain in Guangdong, for 70 million yuan. And this is only the first step in the Guangdong Dazhongxia plan. According to the previous agreement reached between Guangdong China Travel and the local government, in the future, it will invest 1.5 billion yuan with two strategic investors and fully participate in the development and operation of the Greater Danxia Mountain Scenic Area with a total area of 300 square kilometers. The Dadanxia Scenic Area not only includes the "World Geopark"-Danxia Mountain Scenic Area, but also includes forest parks such as Chebaling, Lianhua Mountain, and Xiaokeng. Due to lack of funds, more than 300 square kilometers of the Dadanxia Mountain Scenic Area is only 23 square kilometers open to tourists, and more than 90% of the scenic areas have not "meeted" with tourists.

In fact, even in Guangdong Province, CTS Guangdong is not the only travel agency involved in scenic area operations, nor is it the earliest travel agency involved in scenic area operations. Well-known travel agencies, including Guangzhou Tour, Nanhu International Travel Service, Guangdong China Travel Service, and so on, have fully "cast the net" in Guangdong Province and are involved in the operation and development of scenic spots.

In September 2005, Nanhu International Tourism took over the operation of Delong's Panlong Gorge Ecological Tourism Area and Jinlin Water Village Scenic Area for a period of 46 years. In December 2005, Nanhu International Tourism signed a contract with Sihui City to take over the development and operation of Qishihe Scenic Area The term is 30 years.

Nationwide, in places such as Hunan, Yunnan, and Anhui, which are rich in tourism resources, like Guangdong, examples of handing over the management rights of scenic spots to traditional travel agencies for development within a certain period of time can be found everywhere. Traditional travel agencies "turn around" and set foot in the upper reaches of the industrial chain have gradually become clear.

The long-splitting status quo of small profits and the predation of foreign travel agencies in the future will force traditional domestic travel agencies to seek new business growth points

Compared with the traditional phenomenon that traditional travel agencies have turned around and involved in the operation of scenic spots upstream of the tourism industry chain, the industry and the public are more concerned about the reasons and impacts behind the action.

With the development of Guangdong's tourism industry with more than 1,000 travel agencies, an indisputable fact is that as competition intensifies, profits have become increasingly dilutive. According to the industry's relatively pertinent argument, in the traditional two major business components of travel agencies, the gross profit margin of domestic travel has dropped to about 10%, and the original most profitable outbound travel now only maintains within 15%. At the peak of profit, domestic travel can reach 15%, and outbound travel can reach more than 20%.

A complete tourism industry chain involves many links such as food, accommodation, travel, tourism, shopping, entertainment, etc. Traditional travel agencies often only perform a single function of grouping. Most of this profit is divided up by hotels, scenic spots, restaurants, transportation and other links, and finally the profits that can be attributed to travel agencies are very scarce. According to people familiar with the matter, under normal circumstances, the travel agency's profit is less than 1/10 of the overall profit on the internal travel routes, while accommodation and food account for 1/2, scenic spots account for 1/3, and the rest are transportation and entertainment etc.