Introduction
Marginal value is marginal benefit minus marginal cost. It is simply how much benefit you get per each additional unit of measure (marginal benefit) minus how much it costs you per each additional unit of measure (marginal cost).
Example
Let’s say that you’re the owner of a company that produces widgets. Each widget is sold for 10 dollars (marginal benefit) and it costs you 5 dollars to make (marginal cost). Marginal value is thus 5 dollars per unit.
Application
Marginal cost and marginal benefit tells us the value of performing a particular action at any given moment of time. It allows us to predict behavior.
Example of Application: How Many Hours Do People Work?
When people work, they evaluate two things. They consider the marginal benefit of their time and the marginal cost of their time. As long as the amount of benefit they get from an additional work of work (money, job satisfaction, etc.) is higher than the opportunity cost of working that hour (they could be spending time with family, they could be sleeping, etc.), they will continue to work. Money is of decreasing marginal benefit as each additional dollar is less valuable from a purchasing power perspective and from the perspective of the necessity of purchase. It is from a worker’s personal perceptions of the marginal benefits and marginal costs that we get how long a worker will work.
Fee Structure
| Rate | Assets Under Management |
| 1.44% | Below $125,000 |
| 1.00% | Between $125,000 and $750,000 |
| .85% | Between $750,000 and $1,250,000 |
| .80% | Between $1,250,000 and $1,750,000 |
| .75% | Between $1,750,000 and $2,500,000 |
| .70% | Between $2,500,000 and $3,250,000 |
| .65% | Between $3,250,000 and $4,250,000 |
| .60% | Above $4,250,000 |
A single rate is applied to the entire account. So a person with a $750,000.01 account pays less than a person with a $750,000 account. I will waive personal tax return fees for accounts over $1 million. For accounts that are above $5,250,000, we’ll need to discuss a custom rate.
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Questions for the comments
Did my explanation make sense? Do you agree or disagree with what I said?
