Question

How will thinking on the margin help increase the chance of long-term success for your business, even if additional competition enters your community?

Answer 1

Thinking on the margin helps businesses make incremental adjustments by considering marginal costs and benefits, supporting long-term success and adaptability in competitive markets.

Step-by-step explanation:

Thinking on the margin is critical for businesses to adapt to new competitors and changing market conditions. When additional competition enters a community, a business can use thinking at the margin to make incremental adjustments in operations or strategy. These marginal decisions might include whether to extend business hours, improve product quality, or add new services. Each decision is weighed by considering the marginal cost and marginal benefit, ensuring that the business remains competitive and retains its customers. For example, adding one more hour to the store's operation might attract more customers, but if the increase in revenue is less than the cost of staying open longer, it isn't worth it.

Over time, consistent marginal improvements can lead to significant advances in overall business efficiency and customer satisfaction. This ongoing process of evaluation and adjustment aids businesses in building long-term success, as it helps them to stay dynamically aligned with market demands and competitive pressures. By continually assessing the marginal benefits of potential changes against their marginal costs, businesses can make smarter, more informed decisions that contribute to sustainability and growth, even in the face of increased competition.

Answer 2

The correct answer is by establishing strategies to give that push to potential consumers.

Step-by-step explanation:

Decisions sometimes require minor additional adjustments to a pre-established action plan. Object prices are changed so that rational people decide to invest in products. There are millions of people who, when they are very close to their point of indifference, about to change their decision, receive a small "push". Thinking about the margin helps to increase the margin of success of a business in the long term by establishing strategies to give that push to potential consumers.

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