Pedro Arantes
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Marginal Analysis

It provides the lasting retention of information and skills.
#business
Zettelkasten, July 08, 2021

Notes

  • Marginal analysis is a comparison of the additional benefits of an activity and the additional costs incurred.

    • Marginal cost/benefit is an incremental increase in the expense/consumer's benefit a company incurs to produce one additional unit of something.
  • Such analysis only considers the benefits of a unique activity in a complex system. In other words, how one variable affects the whole system.

    • You don't focus on the business output as a whole.
  • Companies use marginal analysis as a decision-making tool.

References

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