IGNOU BRL 104 2026 - How can marginal analysis and cost benefit analysis serve as tools for

Question

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

12 Feb 2026

Answer :

Word Count : 414

Marginal analysis and cost benefit analysis are important decision-making tools in retail management and communication because they help managers evaluate alternatives logically and choose the most efficient course of action. Retailers constantly face choices such as pricing strategies, promotional campaigns, product assortment, store layout changes, staffing levels, and technology investments. These tools allow managers to compare options by examining costs, benefits, and incremental impacts rather than relying only on intuition. Marginal analysis focuses on the additional or incremental costs and benefits associated with a specific decision. Instead of evaluating total costs or total revenue, managers

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