The primary economic principle used in managerial finance is ________.
A) purchase power parity
B) asset pricing theory
C) Porter's theory of five forces
D) marginal cost-benefit analysis

Question

Quizplus · Accepted Answer

Marginal cost-benefit analysis is the primary economic principle used in managerial finance. It involves analyzing the additional costs and benefits of a decision to determine if it is worthwhile or not. It helps in making decisions about investments, pricing strategies, and resource allocation. Purchase power parity, asset pricing theory, and Porter's theory of five forces are economic principles that are relevant in other areas of economics but not in managerial finance.

The Primary Economic Principle Used in Managerial Finance Is ________