Question

How do economists define marginal benefit for an individual?

A)the additional positive value that a person gives up in order to produce one more unit of a good or service

B) the additional positive value that a person receives from consuming one more unit of a good or service

C) the ability of a person to produce a greater quatity of a good or service than competitors, using the same amount of resources

D)the ability of a person to consume a greater quantity of a good or service than competitors, using a smaller amount of resources

Answer 1

Answer:

B) the additional positive value that a person receives from consuming one more unit of a good or service

Explanation:

A benefit is an advantage or gains to someone. In economics, the term marginal refers to an extra unit or one more unit.

Marginal benefit is the additional gain associated with consuming one more unit of a product or service. In this context, the term marginal benefit is used interchangeably with marginal utility. In practice consuming the first unit provides the highest benefit. Continuous consumption result in reduced benefits. In other words, marginal benefits decline with additional consumption.