Marginal Cost Analysis Quotes

Justification for infidelity and dishonesty in all their manifestations lies in the marginal cost economics of just this once. ~ Clayton M Christensen

Resisting the temptation whose logic was "In this extenuating circumstance, just this once, it's OK" has proven to be one of the most important decisions of my life. Why? My life has been one unending stream of extenuating circumstances. Had I crossed the line that one time, I would have done it over and over in the years that followed.
The lesson I learned from this is that it's easier to hold to your principles 100% of the time than it is to hold to them 98% of the time. If you give in to "just this once," based on a marginal cost analysis, as some of my former classmates have done, you'll regret where you end up. You've got to define for yourself what you stand for and draw the line in a safe place. ~ Clayton M Christensen

In theory, the risk of business failure can be reduced to a number, the probability of failure multiplied by the cost of failure. Sure, this turns out to be a subjective analysis, but in the process your own attitudes toward financial risk and reward are revealed.

By contrast, personal risk usually defies quantification. It's a matter of values and priorities, an expression of who you are. "Playing it safe" may simply mean you do not weigh heavily the compromises inherent in the status quo. The financial rewards of the moment may fully compensate you for the loss of time and fulfillment. Or maybe you just don't think about it. On the other hand, if time and satisfaction are precious, truly priceless, you will find the cost of business failure, so long as it does not put in peril the well-being of you or your family, pales in comparison with the personal risks of no trying to live the life you want today.

Considering personal risk forces us to define personal success. We may well discover that the business failure we avoid and the business success we strive for do not lead us to personal success at all. Most of us have inherited notions of "success" from someone else or have arrived at these notions by facing a seemingly endless line of hurdles extending from grade school through college and into our careers. We constantly judge ourselves against criteria that others have set and rank ourselves against others in their game. Personal goals, on the other ha ~ Randy Komisar

One effect of benefit-cost analysis is to give any respectable engineer or economist a means for justifying almost any kind of project the national government wants to justify ... Exclusive reliance on benefit-cost analysis has been one of the greatest threats to wise decisions in water development. ~ Gilbert F. White

That is, while we believe that cost-benefit analysis is an important tool to inform agency decision making, the results of the cost-benefit analysis do not trump existing law. ~ Fred Thompson

Emotion is not a defect in an otherwise perfect reasoning machine. Reason, unfettered from human feeling, has led to as many horrors as any crusader's zeal. What use is pity in a world devoted to maximizing efficiency and productivity? Scientific husbandry tells us to weed out the sick, the infirm, the weak. The ruthless efficiency of euthanasia initiatives and ethnic cleansing are but the programmatic application of Nietzsche's point: from any quantifiable cost-benefit analysis, the principles of animal husbandry should apply to the human race. Charles Darwin himself acknowledged that strict obedience to "hard reason" rather than sympathy for fellow humans would represent a sacrifice of "the noblest part of our nature."6 It is the human heart resonating with empathy, not the logical brain attuned to the mathematics of efficiency, that revolts at cruelty and inhumanity. In ~ Terryl L. Givens

What I understand that They - most everyone, really - don't, is that suicide isn't an act of selfishness. Sometimes the hurt/pain/shame/loss is so much, so constant, and with no guarantee that it'll ever dissolve, sometimes the cost/benefit analysis of life/death truly feels like it'll only work out in favour of death. ~ Michelle Hodkin

History favors the bold. Compensation favors the meek. As a Fortune 500 company CEO, you're better off taking the path often traveled and staying the course. Big companies may have more assets to innovate with, but they rarely take big risks or innovate at the cost of cannibalizing a current business. Neither would they chance alienating suppliers or investors. They play not to lose, and shareholders reward them for it - until those shareholders walk and buy Amazon stock. Most boards ask management: "How can we build the greatest advantage for the least amount of capital/investment?" Amazon reverses the question: "What can we do that gives us an advantage that's hugely expensive, and that no one else can afford?" Why? Because Amazon has access to capital with lower return expectations than peers. Reducing shipping times from two days to one day? That will require billions. Amazon will have to build smart warehouses near cities, where real estate and labor are expensive. By any conventional measure, it would be a huge investment for a marginal return. But for Amazon, it's all kinds of perfect. Why? Because Macy's, Sears, and Walmart can't afford to spend billions getting the delivery times of their relatively small online businesses down from two days to one. Consumers love it, and competitors stand flaccid on the sidelines. In 2015, Amazon spent $7 billion on shipping fees, a net shipping loss of $5 billion, and overall profits of $2.4 billion. Crazy, no? No. Amazon is going ~ Scott Galloway

An e-book can be produced and distributed at near zero marginal cost. ~ Jeremy Rifkin

Now in business we do a cost benefit analysis before we make policy changes. Washington should as well. ~ Vicky Hartzler

We are all bounded with each other on the basis of our beliefs and values; when we question those values, we are certainly left alone, away from our families, friends and the dear one. And that is a cost benefit analysis we all make and we keep satisfying ourselves with the status quo of situations. ~ M.F. Moonzajer

According to Becker's logic, if we're short on cash and happen to drive by a convenience store, we quickly estimate how much money is in the register, consider the likelihood that we might get caught, and imagine what punishment might be in store for us if we are caught (obviously deducting possible time off for good behavior). On the basis of this cost-benefit calculation, we then decide whether it is worth it to rob the place or not. The essence of Becker's theory is that decisions about honesty, like most other decisions, are based on a cost-benefit analysis. ~ Dan Ariely

The analysis of our illustrations has taught us another incidental lesson. This is that, when we study the effects of various proposals, not merely on special groups in the short run, but on all groups in the long run, the conclusions we arrive at usually correspond with those of unsophisticated common sense. It would not occur to anyone unacquainted with the prevailing economic half-literacy that it is good to have windows broken and cities destroyed; that it is anything but waste to create needless public projects; that it is dangerous to let idle hordes of men return to work; that machines which increase the production of wealth and economize human effort are to be dreaded; that obstructions to free production and free consumption increase wealth; that a nation grows richer by forcing other nations to take its goods for less than they cost to produce; that saving is stupid or wicked and that squandering brings prosperity. ~ Henry Hazlitt

It may well be that an analysis of figures would reveal a law - the duration of a marriage is inversely proportional to the cost of the wedding. Or, to put it another way, any union celebrated with personalized toasting flutes is doomed. ~ Michael Foley

Fast food may appear to be cheap food and, in the literal sense it often is, but that is because huge social and environmental costs are being excluded from the calculations. Any analysis of the real cost would have to look at such things as the rise in food-borne illnesses, the advent of new pathogens, antibiotic resistance from the overuse of drugs in animal feed, extensive water pollution from intensive agricultural systems and many other factors. These costs are not reflected in the price of fast food. ~ Prince Charles

My analysis, especially of the computer revolution, always comes back to capitalism. It's that economic system that has led to Western civilization's willingness to enslave ourselves to machines - because some people benefit enormously from it, while the costs are borne by other people and the planet. ~ Kirkpatrick Sale

I really don't know one plane from the other. To me they are just marginal costs with wings. ~ Alfred Kahn

In neo-classical economic theory, it is claimed without evidence that people are basically self-seeking, that they want above all the satisfaction of their material desires: what economists call "maximising utility". The ultimate objective of mankind is economic growth, and that is maximized only through raw, and lightly regulated, competition. If the rewards of this system are spread unevenly, that is a necessary price. Others on the planet are to be regarded as either customers, competitors or factors of production. Effects upon the planet itself are mere "externalities" to the model, with no reckoning of the cost - at least for now. Nowhere in this analysis appears factors such as human cooperation, love, trust, compassion or hatred, curiosity or beauty. Nowhere appears the concept of meaning. What cannot be measured is ignored. But the trouble is that once our basic needs for shelter and food have been met, these factors may be the most important of all. ~ Carne Ross

The Internet rewards scale; by trading higher up-front costs for lower marginal cost, market leaders can invest in better technology and service. As a result, there is nothing online that is both great in quality and small in scale. Amazon wasn't originally a better bookstore than the small shops we mourn, but it is now. ~ John Katzman

Consider a more extreme example than the casino experiment. Assume a collection of people play Russian roulette a single time for a million dollars - this is the central story in Fooled by Randomness. About five out of six will make money. If someone used a standard cost-benefit analysis, he would have claimed that one has an 83.33 percent chance of gains, for an "expected" average return per shot of $833,333. But if you keep playing Russian roulette, you will end up in the cemetery. Your expected return is … not computable. ~ Nassim Nicholas Taleb

Nature is an expert in cost-benefit analysis,' she says. 'Although she does her accounting a little differently. As for debts, she always collects in the long run ... ~ Margaret Atwood

If we look at the way an industrial producer creates new products, we see a long list of trials and errors and eventually improvement in quality at a lower cost. Urban policies and strategies, by contrast, often do not follow this logic; they are often repeated even when it is well known that they failed. For instance, policies like rent control, greenbelts, new light rail transports, among others, are constantly repeated in spite of a near consensus on their failure to achieve their objectives. A quantitative evaluation of the failure of these policies is usually well documented through special reports or academic papers; it is seldom produced internally by cities, however, and the information does not seem to reach urban decision makers. Only a systematic analysis of data through indicators allows urban policies to be improved over time and failing policies to be abandoned. But as Angus Deaton wrote: 'without data, anyone who does anything is free to claim success. ~ Alain Bertaud

There are certain pressures and things that change your life to a degree that, in the cost benefit analysis that constantly goes on, sometimes makes you think, 'Maybe I should just leave.' ~ David Schwimmer

Truthfulness, honor, is not something which springs ablaze of itself; it has to be created between people. This is true in political situations. The quality and depth of the politics evolving from a group depends in large part on their understanding of honor. Much of what is narrowly termed "politics" seems to rest on a longing for certainty even at the cost of honesty, for an analysis which, once given, need not be re-examined ... It isn't that to have an honorable relationship with you, I have to understand everything, or tell you everything at once, or that I can know, beforehand, everything I need to tell you. It means that most of the time I am eager, longing for the possibility of telling you. That these possibilities may seem frightening, but not destructive to me. That I feel strong enough to hear your tentative and groping words. That we both know we are trying, all the time, to extend the possibilities of truth between us. ~ Adrienne Rich

I can't give you a specific number today, in large part because the analysis upon which we would make that determination has not been completed ... I think it is fair to say there may be additional costs associated with a farming operation, but it is very difficult to quantify. ~ Tom Vilsack

In an exchange economy everybody's money income is somebody else's cost. Every increase in hourly wages, unless or until compensated by an equal increase in hourly productivity, is an increase in costs of production. An increase in costs of production, where the government controls prices and forbids any price increase, takes the profit from marginal producers, forces them out of business, means a shrinkage in production and a growth in unemployment. Even where a price increase is possible, the higher price discourages buyers, shrinks the market, and also leads to unemployment. If a 30 percent increase in hourly wages all around the circle forces a 30 percent increase in prices, labor can buy no more of the product than it could at the beginning; and the merry-go-round must start all over again. ~ Henry Hazlitt

I like movies that interest me and stories that interest me, I don't think about how much money it's gonna [cost] to make the movie, I don't think about any of that. I think about certain aspects like who's making the movie and who's gonna tell a story that I wanna be involved in, but I don't have that choice and I never have. ~ Alex Pettyfer

Nissan asked him to make an estimate of what it would cost to run the plant. When he finished it, he typed it up, signed it, and - according to the procedure he had been taught at Ford - brought it to his new boss, Takashi Ishihara, president of Nissan, to sign. Ishihara seemed surprised when he looked at it, and said nothing. A few days later he brought it back to Runyon with his signature at the bottom. "Frame this," he said, "because it is the last piece of paper I will sign for you." Runyon looked puzzled. "We searched very carefully for the man to run our factory," Ishihara continued, "and we picked you, and you are our man and we trust you. We don't have to sign papers anymore. From now on it is just yes or no with us. ~ David Halberstam

During an individual's immersion in a domain, the locus of flow experiences shifts: what was once too challenging becomes attainable and even pleasurable, while what has long since become attainable no longer proves engaging. Thus, the journeyman musical performer gains flow from the accurate performance of familiar pieces in the repertoire; the youthful master wishes to tackle the most challenging pieces, ones most difficult to execute in a technical sense; the seasoned master may develop highly personal interpretations of familiar pieces, or, alternatively, return to those deceptively simple pieces that may actually prove difficult to execute convincingly and powerfully. Such an analysis helps explain why creative individuals continue to engage in the area of their expertise despite its frustrations, and why so many of them continue to raise the ante, posing ever-greater challenges for themselves, even at the risk of sacrificing the customary rewards. ~ Howard Gardner

When workers make more money, they respond by being more productive in their jobs and are less likely to leave, reducing turnover costs. This puts money in business' pockets, and workers also then have more money to spend in the local economy. ~ David Rolf

Exploitation. Now, there's a word that has been scrubbed out of the poverty debate. 42 It is a word that speaks to the fact that poverty is not just a product of low incomes. It is also a product of extractive markets. Boosting poor people's incomes by increasing the minimum wage or public benefits, say, is absolutely crucial. But not all of those extra dollars will stay in the pockets of the poor. Wage hikes are tempered if rents rise along with them, just as food stamps are worth less if groceries in the inner city cost more - and they do, as much as 40 percent more, by one estimate. 43 Poverty is two-faced - a matter of income and expenses, input and output - and in a world of exploitation, it will not be effectively ameliorated if we ignore this plain fact. ~ Matthew Desmond

He had an uncommon thirst for knowledge, in the pursuit of which he spared no cost nor pains. ~ Jonathan Edwards

To eliminate the discrepancy between men's plans and the results achieved, a new approach is necessary. Morphological thinking suggests that this new approach cannot be realized through increased teaching of specialized knowledge. This morphological analysis suggests that the essential fact has been overlooked that every human is potentially a genius. Education and dissemination of knowledge must assume a form which allows each student to absorb whatever develops his own genius, lest he become frustrated. The same outlook applies to the genius of the peoples as a whole. ~ Fritz Zwicky

No definition of poetry is adequate unless it be poetry itself. The most accurate analysis by the rarest wisdom is yet insufficient, and the poet will instantly prove it false by setting aside its requisitions. It is indeed all that we do not know. ~ Henry David Thoreau

The people of the United States don't recognize it, but the oil industry has given the greatest gift to the people of the nation, and that gift is the low cost of energy. Bottom line is this enables the country to be very competitive manufacturing-wise and in the world economy. ~ Ray Lee Hunt

When it comes to energy, cost isn't everything - but it's a lot. Everybody wants cheap power. ~ Jeff Goodell

You may have a success in life, but then just think of it - what kind of life was it? What good was it - you've never done the thing you wanted to do in all your life. I always tell my students, go where your body and soul want to go. When you have the feeling, then stay with it, and don't let anyone throw you off…. The way to find out about your happiness is to keep your mind on those moments when you feel most happy, when you really are happy - not excited, not just thrilled, but deeply happy. This requires a little bit of self-analysis. What is it that makes you happy? Stay with it, no matter what people tell you. This is what I call "following your bliss". ~ Joseph Campbell

Love is not always doing what brings pleasure; love is also doing what is good for someone, whatever the cost at the moment. sometimes, it's leaving ... for awhile - and the love is shown, then, in the pain given. For pain is a lesson best learned from the one who loves you the most. ~ Linda Goodman

This assumption of the intrinsically repressive nature of collective experience and redemptive power of individuation is a staple of contemporary art theory and criticism. I would argue that a closer analysis of collaborative and collective art practices can reveal a more complex model of social change and identity, one in which the binary oppositions of divided vs. coherent subjectivity, desiring singularity vs. totalizing collective, liberating distanciation vs. stultifying interdependence, are challenged and complicated. ~ Grant H. Kester

Do not believe what you have heard Do not believe in tradition because it is handed down many generations Do not believe in anything that has been spoken of many times Do not believe because the written statements come from some old sage Do not believe in conjecture Do not believe in authority, or teachers, or elders But after careful observation and analysis, when it agrees with reason and it will benefit one and all, then accept it and live by it. ~ Gautama Buddha

Experimental investigation, to borrow a phrase employed by Kepler respecting the testing of hypotheses, is "a very great thief of time." Sometimes it costs many days to determine a fact that can be stated in a line. ~ John William Draper

While I wholeheartedly support finding cost savings through efficiencies in all areas of the federal government, including defense, I will resist any actions that would compromise our nation's qualitative edge when it comes to national defense. It is well known that weakness invites aggression. Threats do not always announce themselves in advance. In order to prepare for unpredictable threats, we must modernize our defense systems. We certainly cannot let them age and deteriorate. ~ Doug Lamborn

I made the assumption, wrong of course, that conceptual analysis was a brief preliminary on the road to finding out about the nature of free will, consciousness, the self, the origin of values, and so forth. ~ Patricia Churchland

The first job of the historian and of the journalist is to find facts. Not the only job, perhaps not the most important, but the first. Facts are the cobblestones from which we build roads of analysis, mosaic tiles that we fit together to compose pictures of past and present. There will be disagreement about where the road leads and what reality or truth is revealed by the mosaic picture. The facts themselves must be checked against all the available evidence. But some are round and hard
and the most powerful leaders in the world can trip over them. So can writers, dissidents and saints. ~ Timothy Garton Ash