Question

Why would a consumer conduct a marginal analysis

Answer 1

What is 'Marginal Analysis' Marginal analysis is an examination of the additional benefits of an activity compared to the additional costs incurred by that same activity. Companies use marginal analysis as a decision-making tool to help them maximize their potential profits.

Answer 2

Answer: The correct answer is : Marginal analysis is useful because it helps people (consumers) and also companies to decide how to allocate their few resources in order to minimize costs but in turn maximize profits.

Explanation: Marginal analysis is a tool that helps make decisions because it weighs the additional costs and benefits of going for an additional unit of some product.