Question

________ lets marketers look at cost and demand at the same time and identify the output and the price that will generate the maximum profit.

A) Break-even analysis
B) SWOT analysis
C) Marginal analysis
D) Competitive analysis
E) Supply-demand analysis

Answer 1

Marginal analysis is the method by which marketers can view both cost and demand to determine the most profitable output and pricing strategy for a product. option c is answer

Step-by-step explanation:

The technique that lets marketers look at cost and demand simultaneously to identify the output and the price that will generate the maximum profit is C) Marginal analysis. By dividing total costs into fixed and variable costs and then using these calculations to assess average total cost, average variable cost, and marginal cost, firms can make informed decisions about the profit-maximizing quantity and price.

Marginal analysis is essential when considering both cost structure and market structure to determine the most profitable output level.

Step 4 in this process is to compare the marginal cost for each potential output level to the market price. The point where the price equals marginal cost represents the output level where profits are maximized. This strategic analysis helps firms adjust their production and pricing strategies for long-term profitability. option c is answer