A business expands its workforce rapidly without performing a marginal analysis, resulting in unsustainable labor costs.

A factory ceases to hire additional workers when the extra cost of employing another worker outweighs the extra revenue generated by that worker.

A company continues to hire an excessive number of workers, mistakenly believing that higher employment automatically guarantees higher total revenue.

A firm diverts investment from labor to marketing initiatives in an effort to boost consumer demand instead of conducting a proper cost-benefit hiring analysis that ignores marginal relationships.