Which of the following best describes 'marginal analysis'?

Marginal analysis is a key concept in economics and marketing that focuses on the additional benefits or revenues generated from selling one more unit of a product. This analysis involves assessing whether the extra revenue gained from the sale of an additional unit outweighs the additional costs incurred in producing and selling that unit. By examining the incremental changes in costs and benefits, businesses can make informed decisions about production levels, pricing strategies, and resource allocation.

This approach helps organizations determine the optimal level of output to maximize profitability. If the marginal benefit exceeds the marginal cost, it makes sense to increase production; if the opposite is true, a reduction might be warranted. Consequently, marginal analysis plays a crucial role in strategic decision-making, ensuring that businesses operate efficiently and effectively in responding to market demands.