PDFprof.comSearch Engine CopyRight

What is marginal benefit example


For example: Let's say a pair of pants is being sold for $50. However, you're willing to pay $60 for the pair. The marginal benefit in this instance is $60 because that's the most you're willing to pay for that pair of pants. This means the marginal benefit is $10 higher than the actual selling price.

What is marginal cost and marginal benefit examples?

When we use the term Marginal, it usually means doing one more of something. For example, a marginal cost would be how much it would cost a company to produce 1 more of a good. Their marginal benefit would be the extra revenue they get from producing that one extra good.

What does marginal benefit?

What Is Marginal Benefit? A marginal benefit is a maximum amount a consumer is willing to pay for an additional good or service. It is also the additional satisfaction or utility that a consumer receives when the additional good or service is purchased.

How do you calculate marginal benefit example?

Marginal refers to the focus on the cost or benefit of the next unit or individual, for example, the cost to produce one more widget or the profit earned by adding one more worker.