What marginal costs and benefits might a business owner have to consider when trying to decide whether to hire one, two, or three additional workers?

Cost-benefit analysis

Explanation:

This is an important technique within the scope of decision theory. It aims to determine the suitability of the business through the enumeration and subsequent valuation in monetary terms of all costs and benefits derived directly and indirectly from said business.

Process

The following is a list of steps that comprise a generic cost-benefit analysis. List the alternatives to business. List the parties Select the measure (s) and measure all the cost/benefit elements. Predict the result of cost and benefits during the relevant period. Convert all costs and benefits into a common currency. Apply the discount rate. Calculate the net present value of the business options. Perform sensitivity analysis. Adopt the recommended option.

The company benefits because more workers mean more production, work gets done faster. And the company costs will be making less money because it'll have to pay more employees.