An economic principle used in finance is:
A)Full utilization of data processing
B)Marginal analysis where marginal costs are set equal to marginal revenues.
C)Accrual basis of recognizing revenues and expenses
D)Target capital structure

Question

Quizplus · Accepted Answer

Marginal analysis is a key economic principle used in finance, where companies analyze the additional costs and revenues associated with each additional unit of production of a product or service. By setting marginal costs equal to marginal revenues, companies can determine the optimal level of production that will maximize profits.

An Economic Principle Used in Finance Is