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Unformatted text preview: efficiency. Weighing the cost and benefit, you may choose to get up early and save a seat because you think the benefit outweighs the cost. Rational people always think at the margin. So lets consider why students save seats for their roommates or their friends. You may say that these students are just attentive and considerate. But when we use economic principle, this is all about marginal analysis. Lets say youve already take a seat, and the marginal cost of saving another seat for your friend is almost zero. But the marginal benefit is large. Your friend will be grateful for your action and think of you as an attentive person. You may also receive some certain kind of rewards from your friend as a result of your act. Because the marginal benefit is much larger than the marginal cost so people would like to save seats for their friends. This is the phenomenon Ive observed and I explained it using cost-benefit principle....
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- Spring '06