5 Main Applications of Marginal Analysis
The following points highlight the five main applications of marginal analysis. The applications are: 1. Make-or-Buy Decisions 2. Capital Expenditure Decisions 3. Output Expansion and Contraction Decisions 4. Product-Line Decisions 5. Optimal Advertising Decisions. Marginal Analysis: Application # 1. Make-or-Buy Decisions: Decision making under resource constraint is no doubt a complex exercise. If a firm suffers from capacity constraints it [...]