Marginal Analysis: Concept, Importance, and Business Applications
Marginal analysis is an economic decision-making tool used to evaluate the additional benefits and costs of a decision. It helps businesses, policymakers, and individuals determine the optimal level of production, pricing, and resource allocation to maximize efficiency and profitability.
1. What Is Marginal Analysis?
Marginal analysis involves comparing the additional (marginal) benefits of an action to the additional (marginal) costs incurred. It is commonly applied in economics, business, and finance to optimize decision-making.… Read more