After you analyzed demand, you took steps to make sure your business made sense financially.How will thinking on the margin help increase the chance of long-term success for your business, even if additional competition enters your community?

Answer:

Thinking on the margin helps me compare the additional costs and benefits of producing each unit. I can increase production while the additional revenue is greater than the additional cost, but reduce production when it is no longer profitable. This knowledge also helps me adjust prices or offer discounts while remaining profitable, allowing my business to compete and succeed over the long term.