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kherson [118]
1 year ago
8

Harry, a wheat farmer, is deciding whether or not to add fertilizer to his crops. If he adds 1 pound of fertilizer per acre, the

value of the resulting crops rises from $80 to $100 per acre. According to marginal analysis, harry should add fertilizer if it costs less than.
Business
1 answer:
GarryVolchara [31]1 year ago
8 0

harry should add $20 per pound

The method of identifying the advantages and disadvantages of various options by looking at the incremental impact on total revenue and total cost caused by a very modest change in the value or input of each alternative (just one unit). Instead of making decisions based on totals or averages, marginal analysis encourages those that focus on small or gradual changes to resources. Examining the costs and possible gains of particular business operations or financial choices is known as marginal analysis. The objective is to ascertain whether the benefits from the change in activity will be great enough to outweigh the costs.

To know more about marginal analysis refer to brainly.com/question/7412432

#SPJ4

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