- [[marginal analysis]], [[optimization|optimization]] # Idea [[economics is constrained optimization]]. It's about performing [[marginal analysis]] to figure out whether purchasing or consuming the next unit of good makes us better or worse off. Constrained [[optimization]] allows us to determine [[economics studies how society distributes scarce resources|how society distributes scarce resources]]. # References - https://courses.kristakingmath.com/library/applications-of-derivatives-dc8b34ad/110495/path/step/57970210