Because consumers behave in a rationally self-interested manner, the consumer will purchase a good or service when the marginal benefit is greater than the marginal cost.
Marginal benefit is the benefit a consumer derives from increasing consumption of a good or service by one unit. Marginal cost is the change in total cost when consumption is increased by one unit.
According to economic theory, a rational consumer would consume a good as long as marginal revenue is greater than marginal cost. Utility is maximised when marginal revenue is equal to marginal cost.
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