Marginal benefit
Definition. Marginal benefit is the additional satisfaction, utility or value that a consumer, or society as a whole, gains from consuming one more unit of a good or service over a given period. It generally falls as more units are consumed, reflecting the principle of diminishing marginal utility.
In rational decision making, an agent consumes up to the point where marginal benefit equals marginal cost, since beyond that the extra cost of another unit exceeds the extra benefit gained.
This term belongs to Rational Decision Making in A Level Economics. Read the full chapter for the diagrams, worked examples and exam technique.
Want to use marginal benefit for marks in the exam? Learn it in class or message the team.