A company is considering whether to produce one additional unit of a product. The marginal cost of producing this unit is $50, while the marginal benefit is estimated to be $70. Which category does this decision fall into and why?

This decision falls into the category of marginal analysis, which helps companies determine the additional benefits and costs of producing one more unit of a product. In this case, the marginal cost of producing the extra unit is $50, while the marginal benefit is $70. Since the benefit of $70 is greater than the cost of $50, it means that producing this additional unit will increase the company's profit. Therefore, the company should go ahead and produce the extra unit because it will gain a net benefit of $20. This example shows how understanding marginal analysis can guide businesses in making effective production decisions.