Write two paragraphs or about 500 words describing a scenario in which a real business would use Marginal Analysis

Marginal Analysis

Write two paragraphs or about 500 words describing a scenario in which a real business would use Marginal Analysis. Be sure to include the product/service being provided. Also, include verbal descriptions of the costs that would contribute towards the total costs and the kinds of revenue that can be counted in the total revenue function. Based on your descriptions, describe the interval on which the function would have maximum profit.

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Marginal Analysis

The maximization of profits in business depends on the marginal analysis which involves the setting of the selling price depending on the marginal contributions. The marginal contributions affect the revenues and the costs of production in the business. Therefore, if the firm wants to increase their profits, they need to improve their productions until where the marginal costs and revenue balances. Then the price is set from the demand curve where the costs equal to revenue………………..

APA

489 words

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