Marginal analysis

Also referred to as incremental analysis, it is considering a business decision by comparison of incremental (extra) benefits with incremental (extra) cost. For instance, a hair saloon owner who considers to prolong the working hours in his establishment from 8 to 10 hours per day in a crowded place. Marginal analysis before such a decision will help provide and balance in advance extra earnings to be generated with extra costs, such as additional labour and electricity, etc.