what is marginal principle theory 
marginal principle theory is a very closely related topic that states that individuals make decisions on purchases based on the additional utility they will receive from each unit in the example throughout this page this related to the consumption of pizza when you decide whether or not to reach for that one final slice you are performing a marginal analysis and will ultimately make a decision that aligns with what is best for you which upholds the marginal principle theory the bottom linemarginal analysis is a critical part of a business and life that dictates what level of activity to operate at marginal analysis discovers the point at which marginal revenue equals marginal cost if someone operates below this point they may not be taking advantage of business opportunities if someone operates above this point they may lose resources every unit marginal analysis drives how many units a company produces and often decides what and how much consumers buy 