Overview
Marginal benefit is a fundamental concept in economics that helps individuals and businesses make informed decisions about consumption and resource allocation. It represents the additional satisfaction gained from consuming one more unit of a good or service. Understanding marginal benefit is crucia...
Key Terms
Example: Eating a slice of pizza provides utility to a hungry person.
Example: The satisfaction from eating one more slice of pizza.
Example: The first slice of pizza is more satisfying than the fifth.
Example: Deciding whether to buy a new phone based on its benefits versus its cost.
Example: Choosing between two brands of cereal based on price and taste.
Example: Choosing to spend money on a concert ticket instead of saving it.
Related Topics
Consumer Behavior
Study of how individuals make decisions to allocate their resources.
intermediateCost-Benefit Analysis
Evaluating the costs and benefits of a decision to determine its feasibility.
intermediateElasticity of Demand
Understanding how quantity demanded changes in response to price changes.
advancedKey Concepts
UtilityDiminishing ReturnsCost-Benefit AnalysisConsumer Choice