Balancing the costs and benefits of a good or service is called

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Cost-benefit analysis involves comparing the costs and benefits of a good or service to determine if it is worth producing or consuming. This is important for decision-making in both the private and public sectors. Cost minimization and profit maximization focus solely on reducing costs or maximizing profits, respectively, and do not take into account the benefits to consumers or society as a whole. Marginal revenue analysis and average benefit analysis are both useful in their own right, but do not encompass the full economic analysis of a good or service.

Balancing the Costs and Benefits of a Good or Service