________ lets marketers look at cost and demand at the same time and identify the output and the price that will generate the maximum profit.

Question

Quizplus · Accepted Answer

Marginal analysis involves looking at the cost and revenue of producing one additional unit of a product, and using that information to determine the optimal output level and price. This enables marketers to identify the point at which the marginal revenue from selling an additional unit is equal to the marginal cost of producing it, maximizing profits. Break-even analysis looks at the point at which total revenue is equal to total cost, but does not take into account the optimal output and price for maximum profit. SWOT analysis and competitive analysis focus on other aspects of marketing strategy, while supply-demand analysis looks at the relationship between the quantity of a product supplied and the quantity demanded, but does not directly address profit optimization.

________ Lets Marketers Look at Cost and Demand at the Same