Marginal Benefit : Increased Consumption :: Opportunity Cost : ?

Marginal benefit is the extra satisfaction or value we get from consuming one more unit of a good or service. When we think about opportunity cost, we refer to what we give up in order to get something else. So, just as increased consumption leads to a marginal benefit, the opportunity cost relates to the next best alternative we forego. For example, if you decide to spend your money on a new video game instead of going to the movies, the opportunity cost is the enjoyment you would have received from the movie. In this way, understanding these concepts helps us make better choices about how we use our resources.