Marginal analysis states that financial decisions should be made and actions taken only when added benefits exceeds added costs.

Question

Quizplus · Accepted Answer

Marginal analysis is based on the principle that decision-making and action-taking should occur only when the added benefits exceed added costs. This means that decisions should be made only when the marginal benefit of an action is greater than the marginal cost.

Marginal Analysis States That Financial Decisions Should Be Made and Actions