Margin (economics)

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Economics distinguishes between the intensive margin and the extensive margin when decomposing an aggregate variable into its components. The intensive margin measures the contribution of continuous factors. The extensive margin measures contributions of discrete factors. Formally, if the aggregated variable is Q=Q(N,X) and X is the intensive and

N the extensive margin, then X is a continuous variable and N a discrete variable.

[edit] Examples

• When measuring total employment in hours in labor economics the intensive margin are average hours per workers and the extensive margin is the number of workers.
• When measuring total exports in dollar in international economics the intensive margin is the dollar value of exports in a product category and the extensive margin is the number of product categories.

MARGIN Calculated as a percentage of Sales Value. Generally Margin is referred to Gross Margin. Margin can never be more than 100%. MARGIN IS ALWAYS REFERRED TO AS MARGIN ON SALES