In the context of hiring, marginal analysis helps businesses decide whether to hire an additional employee based on the marginal cost of hiring compared to the marginal benefit of that employee's output. If the marginal cost of hiring an additional worker is $30,000 and the expected marginal benefit is $40,000, what should the business do?

In hiring, marginal analysis is a method that helps businesses evaluate whether the benefits of hiring an extra employee outweigh the costs. In this case, the marginal cost of hiring an additional worker is $30,000, while the expected marginal benefit from their work is $40,000. Since the benefit of $40,000 is greater than the cost of $30,000, the business would gain an additional $10,000 in value by hiring the new employee. Therefore, the business should go ahead and hire the additional worker, as this decision would lead to increased overall profit. This example shows how careful analysis of costs and benefits can guide important business decisions effectively.