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In retail management decision-making, managers are often confronted with multiple alternatives involving pricing, promotion, inventory levels, store layout, and customer service strategies. Marginal analysis and cost-benefit analysis are two important analytical tools that help in systematically evaluating these alternatives by focusing on the relationship between costs and outcomes, thereby improving the quality of managerial decisions. Marginal analysis is based on the concept of examining the additional or incremental changes resulting from a decision. It focuses on comparing the marginal cost (the ________ ________ ____ _____ ____ _______ ___ ________ _________ _________ ______.
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