What does marginal analysis help an economist understand in the context of trade-offs?

Marginal analysis helps economists understand how to make the best decisions by looking at the additional benefits and costs of a choice. When faced with trade-offs, it examines what happens if you increase or decrease the amount of a resource or activity. For example, if a farmer considers planting one more acre of corn, marginal analysis would assess the extra yield and profit from that acre against the costs of seeds, labor, and water. This approach helps the farmer decide if the benefits of planting that extra acre outweigh the costs. By using marginal analysis, economists can see how small changes can lead to better choices in resource allocation.