Marginal analysis involves examining
A)what happens to a firm's costs and revenues when production is changed by one unit.
B)the extra revenue produced by the sale of one more product.
C)the extra cost incurred by the production of one more unit.
D)the difference between marginal revenue and total revenue.
E)the difference between marginal cost and total cost.

Question

Quizplus · Accepted Answer

Marginal analysis involves examining the change in costs and revenues resulting from a change in production by one unit. It helps a firm make decisions on whether to produce more, limit production or shut down.

Marginal Analysis Involves Examining