The marginal benefit from consuming another unit of a good: equals the total benefit obtained from the consumption of all prior
units. equals the increase in total benefits from consuming the unit. must be less than the marginal cost or the unit will not be consumed. must equal the marginal cost or the unit will not be consumed.
Equals the increase in total benefits from consuming the unit.
Explanation:
This is defined as a maximum amount a consumer is willing to pay for an additional good or service.
It is also the additional satisfaction or utility that consumer receives when the additional good or service is purchased. The marginal benefit for a consumer tends to decreases as consumption of the good or service increases.
In the business world, the marginal benefit for producers is often referred to as marginal revenue.
An activity based costing (ABC) system assigns resources to the different production activities, and then unit costs are determined by the proportion of the production activities that every unit requires.
This is a much more complex costing method than just assigning overhead costs based on direct labor hours or machine hours.
