b. outweighs the extra cost.
Marginal analysis is the investigation of the ongoing variations in the
correlation between economic subjects. This process properly examines the
additional advantages of a certain activity and comparing the further
expenditures it takes. The important aspects in this type or analysis
encompasses the marginal revenue, marginal rate of substitution, marginal
product, marginal propensity to save, marginal cost and etc.
Furthermore, many firms invest in marginal analysis to create better and
make the best out of their returns in investments.
