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In marginal analysis, small mistakes can lead to significant miscalculations in assessing marginal costs and benefits, potentially causing major repercussions. An oversight in this precise

In marginal analysis, small mistakes can lead to significant miscalculations in assessing marginal costs and benefits, potentially causing major repercussions. An oversight in this precise analysis can cascade into negative outcomes. For instance, consider a company evaluating whether to produce one additional unit of a product. Through marginal analysis, the company compares the marginal cost of producing the extra unit to the marginal revenue it generates. However, if the company makes a small but critical costlike an increase in maintenance expenses due to higher production. This error might lead the company to believe that producing more units is more profitable than it actually is. Over time, this mistake could result in overproduction, increased wear and tear on machinery, and higher unanticipated costs highlighting a small mistake that lead to a large failure

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