Marginal Cost

Question 1

After watching the video clip from Saving Private Ryan, what were the marginal benefits and marginal costs of the mission to save Private Ryan? Make sure to consider both the explicit and implicit costs involved. Answer the following questions:

a) What costs and benefits were relevant to Tom Hanks’ character when considering the choice between “the mission and the man?” In his mind, could he rationalize whether the marginal benefits outweighed the marginal costs?

b) Describe a choice you made at some point in your life, and explain it in terms of marginal benefits and marginal costs.

c) Can you think of a time in your life when comparing marginal benefits and marginal costs would have been inappropriate?

Question 2

From the first PRACTICE Activity, determine which of the two primary drivers of the competitive landscape is more influential. Explain your rationale. Identify an organization that could benefit from the application of the I/O Model of Above-Average Returns (Figure 1.2 page 15 in the text). Follow the five steps to justify your answer. Do not use Apple or Walmart in this exercise, nor should the organization you select be the same as another post. Be sure to incorporate relevant vocabulary/terms from the chapter and give us the “why”.