Which basic principle refers to the added value from a particular feature or improvement?

• A. Anticipation
• B. Supply & Demand
• C. Substitution
• D. Contribution

Answer: (D)

The idea here is about how much value a single feature or improvement adds to the product or project. This is called the contribution: the incremental value that the feature brings, after accounting for the costs to deliver it. In practice, you think of it as the extra profit or benefit that a feature provides—the part of revenue that can be attributed to that feature once its variable costs are covered.

For example, if adding a new feature increases customers' willingness to pay by $50 per unit, and it costs $10 per unit to implement, the contribution from that feature is $40 per unit. That remaining amount is what helps cover fixed costs and contribute to overall profitability.

The other options don’t capture this idea of incremental value from a feature. Anticipation relates to expectations about future events, not the added value of a current improvement. Supply and Demand describes market forces determining price and quantity, not the value added by a specific feature. Substitution is about choosing alternatives when options change, not the incremental value of a feature itself.