Marginal analysis compares and to determine the optimal outcome or choice.
a) total benefits, total costs
b) total benefits, marginal costs
c) marginal benefits, total costs
d) marginal benefits, marginal costs

Marginal analysis concentrates on the evaluation of the additional benefits of an activity compared to the additional costs. Marginal analysis is a decision-making tool that maximizes the potential profits that arise from changes in revenues and costs as a result of some changes in the activity levels. The analysis is done to ensure that the company does not make a decision based on sunk costs or fixed costs, which do not change as a result of a decision.

Marginal analysis compares ____________ and ____________ to determine the optimal outcome or choice. a) total benefits, total costs b) total benefits, marginal costs c) marginal benefits, total costs d) marginal benefits, marginal costs

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Marginal analysis compares and to determine the optimal outcome or choice.
a) total benefits, total costs
b) total benefits, marginal costs
c) marginal benefits, total costs
d) marginal benefits, marginal costs