What is the best definition of marginal benefit?

A marginal benefit is the maximum amount that a consumer can pay for additional quantity

Step-by-step explanation:

Marginal Benefit or profit:

We know that

Marginal benefit is the rate of change of benefit

Benefit = Revenue -cost

So,

marginal benefit = marginal revenue - marginal cost

A marginal benefit is the maximum amount that a consumer can pay for additional quantity

The marginal benefit is the advantage enjoyed by the consumption of product.

Further explanation:

Marginal benefit:

Marginal benefit refers to the incremental benefit that the consumer is willing to pay for the consumption of an additional goods or services. It can be described as a benefit obtained by consuming an extra unit of product or service. The marginal benefit can be higher or lower than the price of offered product. It is based on the willingness of the consumer to consume the product.  The marginal benefit varies from the level of consumption. Generally, the marginal benefit decreases as the consumption of the product increases because the consumer is willing to consume less as the consumption increases (diminishing marginal theory).

Example: A is hungry and willing to pay $10 for one burger. The marginal benefit of one burger is $10. After one burger, A will not be as hungry as he was in the beginning, so he will be willing to pay less for the second burger. Suppose, A will pay $5 for the second burger. Therefore, the marginal benefit for the second burger will be $5.  

Thus, the marginal benefit is the advantage enjoyed by the consumption of product.

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Answer details  

Grade: Senior School

Subject: Economics

Chapter: Marginal utility

Keywords: What, best, definition, marginal, benefit.

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