Applying Capital Budgeting

Is it realistic to assume that the economic concept of operating at the point where marginal revenue and marginal cost are equal can be applied to real-world strategic planning while at the same time marrying this concept to the capital budgeting process? If so, how can that be done? If the concept is applied, how confident should we be that the firm will achieve the point where marginal cost and marginal revenue are equal?

Your initial response should be two or three paragraphs in length. After you have posted your initial response, read all of your classmates' responses and comment on at least two other postings.

Write your response as a one-page memo.