Your marginal cost is $4.00 and the market price for your good is $2.00. At this market price, you are willing to supply goods.

Hence this reflects the marginal analysis which infers the cost and benefit to produce an efficient output.

Marginal analysis is the investigation of the ongoing variations in the correlation between economic subjects. This process properly examines the additional advantages of a certain activity and comparing the further expenditures it takes. The important aspects in this type or analysis encompasses the marginal revenue, marginal rate of substitution, marginal product, marginal propensity to save, marginal cost and etc. Furthermore, many firms invest in marginal analysis to create better and make the best out of their returns in investments.