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Investments glossary

Marginal Analysis


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Quotes of the day:

(The drugs) cause a reduction in the parasite so when the mosquito bites the person it doesn\'t transmit the disease.

— Neeraj Mistry

Marginal analysis is an examination of the additional benefits of an activity compared to the additional costs incurred by that same activity. Companies use marginal analysis as a decision-making tool to help them maximize their potential profits. Marginal refers to the focus on the cost or benefit of the next unit or individual, for example, the cost to produce one more widget or the profit earned by adding one more worker.


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