Marginal analysis might take the form of such questions as,"Should we extend our hours to include Sundays?" or "What if we put more apples in the pie?" The basic principle is that
A) as long as a marketing action breaks even, the action is worth taking.
B) expected incremental revenues from pricing and other marketing actions must more than offset incremental costs.
C) you "don't rock the boat" if your program is making a profit; instead, you "leave well enough alone."
D) if you are not willing to take risks, even if the numbers tell you otherwise, your business will ultimately fail.
E) marketing and finance are two different animals: "If it feels right in your gut … go for it."

Question

Quizplus · Accepted Answer

Marginal analysis involves weighing the incremental costs and benefits of a potential marketing action. Therefore, option B, which states that expected incremental revenues must more than offset incremental costs, best represents the principles of marginal analysis. Options A, C, D and E do not accurately depict the concept of marginal analysis.

Marginal Analysis Might Take the Form of Such Questions As,"Should