Marginal Benefit - Explained
What is Marginal Benefit?
Written by J. Mance Gordon
Updated at April 23rd, 2024
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What is Marginal Benefit?
For consumers, marginal benefit is a maximum amount of value or benefit that a consumer receives from one additional good or unit of service. That is, it is a measure of utility received from that next unit.
For manufacturers or service firms, marginal benefit is often expressed as marginal revenue received from producing and selling one additional product or unit of service.
Related Topics
- Self Interest
- Cost-Benefit Analysis
- Enlightened Self-Interest
- Fisher's Separation Theorem
- Ratchet Effect
- Total Utility (Economics)
- Efficiency Principle
- Expected Utility
- Subjective Theory of Value
- Positional Goods
- Utilitarianism
- Indifference Curve
- Time Preference Theory of Interest
- Incentives
- Marginal Benefit
- Diminishing Marginal Utility
- Sunk Costs
- Production Possibilities Frontier
- Law of Diminishing Returns
- Economic Efficiency
- Efficiency Theory
- Productive Efficiency
- Capacity Utilization Rate
- Allocative Efficiency
- Pareto Efficient
- Comparative Advantage
- Criticisms of the Economic Approach
- Behavioral Economics
- Normative Economics
- Positive Economics
- Invisible Hand
- Sunk cost