How does marginal analysis work in regards to economics?

The marginal analysis involves making a decision based upon the additional cost incurred by producing an extra unit of output with the additional benefit received from that activity. The optimal decision will be the point at which marginal costs equals marginal benefit.

Economists are interested in additional benefits and additional costs. This concept is useful in making economic decisions. For example, to find the optimal level of output, a business manager will compare the marginal cost of producing an extra output with the marginal benefit of that extra unit of output. This will be the profit maximization output.