Question

QUESTION Which of the following is the best example of the use of marginal an O a A state university decides to O b. K-Mart signs a c A gambler dlaces a betione d wa Mart astimates the cost of bulding a store in e A stock analyst discovers that new location and oompares it to expected evenue generatd the stock of a company he tracks is undervalued raise tuition to cover rising coreact Sor a new clothing brand a game he hk a

Answer 1

Marginal analysis refers to the comparison of marginal benefit and marginal cost of undertaking a task.

If marginal benefit exceeds the marginal cost then task is undertaken and if the marginal benefit does not exceeds the marginal cost then task is not undertaken.

So, estimation of additional cost and additional revenue from a task and their comparison constitute the use of marginal analysis.

It has been provided that Wal-Mart estimates the cost of building a store in new location and compares it to expected revenue generated.

This means Wal-Mart is estimated the marginal benefit and marginal cost of adding a new store and thus is using the marginal analysis.

Hence, the correct answer is the option (d).