MARGINAL ANALYSIS
\mˈɑːd͡ʒɪnə͡l ɐnˈaləsˌɪs], \mˈɑːdʒɪnəl ɐnˈaləsˌɪs], \m_ˈɑː_dʒ_ɪ_n_əl ɐ_n_ˈa_l_ə_s_ˌɪ_s]\
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The process of identifying the benefits and costs of different alternatives. This is done by examining incremental effects on total revenue and total cost. These effects are caused by very small, single unit changes in each alternative's output or input. Instead of using totals or averages, marginal analysis supports decision-making using incremental changes to resources.
By Henry Campbell Black
