Definition
Marginal Economics deals with ‘Margins’ and the next chunk of money that is supposed to be justified by the investment that it generates. When Marginal Economics are applied, all work that has been performed on the product till the decision point is dignified as “sunk cost”, which overall, is not considered in determining further spending decisions.
Marginal thinking in general, is discouraged in Agile. Stockpiling costs/ resources is not recommended in this field. The process in general is considered more inclined towards full value, instead of margins.
Further Reading
- “Lean Software Development: An Agile Toolkit”(book), by Mary Poppendieck and Tom Poppendieck