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What two things are being compared in a marginal analysis?

Sagot :

The auxiliary cost and its related benefits are being compared in the process of marginal analysis.

What is a marginal cost?

Marginal cost is the amount being arisen over and above the total cost from production activity.

Marginal analysis is the approach that helps in examining the activity on which the additional cost is being spent in comparison to how much additional profits are being derived from it. It is the comparison between the marginal cost and the marginal revenue in the same economic activity.

Therefore, the marginal analysis involves the comparison of marginal cost with its marginal income.

Learn more about the marginal cost in the related link:

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