Question

Marginal benefit is:________
a. the additional benefit that one more unit of something will provide.
b. the average benefit that each unit of something provides.
c. the change in the total cost that a company can receive by producing another unit of product.
d. the additional cost that one more unit of something will cost.

Answer 1

Answer:

A

Explanation:

Marginal benefit is the benefit derived from consuming one extra unit of a good

. Marginal benefit is the additional benefit derived from consuming one more unit of a good. the consumption decision is to consume more units of a good that gives the higher benefit per good.

Marginal benefit decreases as consumption increases

An example of marginal benefit.

Imagine a traveller arriving from the desert where he hadn't had a drink of water in days .he is offered his first glass of water. the first cup of water he drinks would give him the highest benefit. As more and more cups of water is drank, marginal benefit decreases. At the point where he is fully satisfied, he stops drinking water and marginal benefit becomes zero.