Marginal benefit represents the additional satisfaction or utility a consumer receives from consuming one more unit of a good or service. Its calculation involves assessing the change in total benefit derived from an incremental increase in consumption. For instance, if a consumer experiences a total benefit of 100 units from consuming five units of a product and a total benefit of 115 units from consuming six units, the additional benefit from the sixth unit is 15 units.
Understanding the incremental gain from each additional unit informs optimal decision-making, both for individuals and businesses. This analysis aids in resource allocation, ensuring that consumption or production levels are aligned with maximizing overall value. Historically, the concept has been central to economic thought, providing a framework for understanding consumer behavior and market equilibrium.
