How much is that one additional unit worth?
Berkonomics
JUNE 4, 2020
Most college econ courses teach marginal economics. So, not to scare those who didn’t take econ, here is a simple explanation. Let’s use breakeven as our test. Let’s say that your company is exactly at breakeven. Here’s the importance of that event and how it affects every productive move you make after that moment. There is amazing leverage in high gross profit margins once a company is past breakeven.
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