What analysis focuses on the changes in total revenue and cost from selling one more unit of a product?

The correct response is based on the concept of marginal analysis, which specifically examines the additional costs and revenues associated with producing and selling one more unit of a product. This type of analysis is crucial for businesses when making decisions about pricing, output levels, and resource allocation.

In marginal analysis, businesses assess whether the extra revenue gained from selling an additional unit exceeds the extra cost incurred in producing that unit. If the marginal revenue is greater than the marginal cost, it is generally beneficial for the company to increase production. This decision-making process is fundamental in optimizing profit, as it helps determine the most efficient level of output.

The other approaches mentioned, such as cost-plus pricing and average-cost pricing, focus more on overall pricing strategies rather than the nuances of additional unit costs and revenues. Demand forecasting is useful for predicting future consumer demand but does not specifically analyze the incremental effects of production decisions. Thus, marginal analysis stands out as the method that directly addresses the effects of changes in production on revenue and costs.