IGNOU BRL 104 2026 - How can marginal analysis and cost benefit analysis se

Question

How can marginal analysis and cost benefit analysis serve as tools for evaluating alternatives?

07 Apr 2026

Answer :

Word Count : 444

Marginal analysis and cost-benefit analysis are essential decision-making tools in retail management, particularly when evaluating alternatives related to pricing, inventory, promotion, and communication strategies. Both approaches help managers allocate limited resources efficiently by comparing the additional gains and losses associated with different choices. Marginal analysis focuses on the incremental or additional changes that occur when a decision is made. In a retail context, this involves comparing the marginal cost (the additional cost of producing or selling one more unit) with the marginal benefit (the additional revenue or advantage gained from that unit). For example, a retailer deciding whether to extend store hours

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