The primary economic principle used in managerial finance is
A) supply and demand.
B) the liquidity trap.
C) the crowding out effect.
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 cost and benefit of a decision, and making decisions that maximize the net benefit. This principle is used extensively in financial decision-making, such as capital budgeting and analyzing the costs and benefits of various financing options.

The Primary Economic Principle Used in Managerial Finance Is