The main advantage that marginal analysis has over most other popular pricing methods is that it

Marginal analysis is an 'examination of the additional benefits' of a task compared to the additional costs incurred by that same task. Businesses use marginal analysis as a 'decision-making tool' to help them increase their potential profits. Margin analysis is a principle that administers the decision making potential of the individuals. Marginal analysis is helpful to individuals and businesses in balancing the costs and benefits of additional actions, like whether to produce more, consume more, and similar other outcomes, thus determining whether the benefits will exceed capital and increase utility. Thus, marginal analysis is advantageous over other pricing methods.

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