Answer: Option (D). An economic model that compares the additional benefits of doing something with the additional cost of doing it.
Explanation:Marginal analysis is a cost-benefits study of a business activity to see if the additional benefits gained by taking an action is worth the cost incurred to take the action. Marginal analysis are used by management to analyze the complexities of a system with respect to its variables and find a way to maximize profits.
Marginal analysis is an examination of the additional benefits of an activity compared to the additional costs incurred by that same activity. Organizations uses marginal analysis as a tool for decision making to help maximize potential profits. Furthermore, it can be used to determine the impact on output that results from a small change in input.
