The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

MARGINAL ANALYSIS Definition & Legal Meaning

Definition & Citations:

The process of identifying the benefits and costs of different alternatives. This is done by examining incremental effects on total revenue and total cost. These effects are caused by very small, single unit changes in each alternative’s output or input. Instead of using totals or averages, marginal analysis supports decision-making using incremental changes to resources.


This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.