The concept of marginal or incremental analysis helps decision makers to:
A)determine global competition.
B)analyze trade agreements.
C)project government expenditures.
D)analyze gross national product.
E)optimize returns or minimize costs.

Question

Quizplus · Accepted Answer

Marginal or incremental analysis helps decision makers to evaluate the costs and benefits of small changes or adjustments in a particular activity or decision. By comparing the costs and benefits of each incremental change, decision makers can determine the optimal level of output that maximizes returns or minimizes costs. This makes E the best choice as it directly relates to the benefits of using marginal analysis. Options A, B, C, and D are not directly related to the benefits of using marginal analysis.

The Concept of Marginal or Incremental Analysis Helps Decision Makers