Quote:
Originally Posted by biker1
You assumed the lowest incremental cost and I presented the average and highest incremental cost. You apparently want to consider the cost of electricity for the golf cart to be different from the cost of electricity for other appliances. I don’t make a distinction. Pick your poison. I looked at my last 17 SECO bills and less than half had a negative PCA. 5 bills had a positive PCA yielding a per kWh cost as high as 18 cents per kWh. We typically run over 1000 kWhs for 5 months of the year. My wife likes it chilly.
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Here, arguments over marginal electric costs versus average electric costs.
Similar to the distinction between marginal tax rates and average tax rates.
If I am already in the highest tax bracket and want to know how much more in taxes I pay on the NEXT dollar of income, I want to use my marginal tax rate, not my average tax rate.
The reason for the particular analysis should determine whether you use marginal versus average.
Discuss.