Question

Marginal benefit is A. the additional cost of producing one more unit. B. the additional benefit from consuming one more unit. C. a legally determined maximum price that sellers may charge. D. the difference between the highest price a consumer is willing to pay and the price the consumer actually pays.

Answer 1

Answer:

Option (B) is correct.

Explanation:

Marginal benefit refers to the benefit that a consumer can get from consuming an additional unit of a commodity.

If the marginal benefit is greater than the marginal cost then a consumer is continuing consuming the additional units of a commodity.

A consumer uses the marginal analysis for deciding whether to consume an extra unit of a commodity or not. In this analysis, a consumer compares the marginal benefit with the marginal cost.