Marginal analysis is a decision-making tool used in economics to evaluate the additional benefits and costs of a particular action. It helps individuals and businesses determine whether the extra benefit gained from an activity outweighs the extra cost incurred. This approach is essential for optimizing resource allocation and maximizing profit. In practice, marginal analysis involves comparing the marginal benefit, which is the gain from consuming or producing one more unit of a good or service, to the marginal cost, the expense of producing that additional unit. By assessing these two factors, decision-makers can make informed choices about production levels, pricing, and consumption.