How can we use marginal analysis in a business or our personal life?
Marginal analysis means comparing the benefits and costs of any particular action. If an action's benefits outweigh its costs, it should be taken.
In business, benefits and costs can often be measured in dollar terms. For example, in a monopolistically competitive market, a firm can increase its sales by lowering its prices. Whether or not the firm should lower its ...
This solution explains the term "marginal analysis" and gives examples of how we use it to make decisions in business and in our personal lives.