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Marginal revenue or marginal profit

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DQ #1: What would be a situation in your personal or professional life in which you use or could use marginal analysis to make a decision? How do you determine the marginal benefit and marginal cost of the decision? You should illustrate your answer with a numerical example. Why do economists believe that managers should use marginal analysis to make optimal business decisions?

DQ #2: What is more important to a manager Marginal Revenue or Marginal Profit? Provide examples. What Shutdown Rule means for a business entity? Should managers opt for a shutdown decision if the company is selling below its Fixed Costs? Explain your statement.

Reference no: EM131398734

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