How do the results of a marginal analysis help marketing managers determine the best price for a product?

Question

Multiple choice question.

By illustrating how price and revenue are actually unrelated

By stating the BEP in dollars

By targeting the intended consumers

By demonstrating how price affects costs, revenues, and profits

Answer 1

The correct answer is:

By demonstrating how price affects costs, revenues, and profits.

Marginal analysis helps marketing managers understand the relationship between price changes and their impact on overall financial performance, which is essential for determining the optimal pricing strategy.