ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Marginal social benefit is the individual’s marginal benefit, plus the overall benefit to society from one additional unit of production. The social benefits of production and consumption include positive and negative externalities that impact independent third parties or society.

Detailed explanation-2: -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.

Detailed explanation-3: -Marginal benefit is the maximum amount a consumer will pay for one additional good or service. Marginal benefit generally decreases as consumption increases. Marginal cost of production is the change in cost for making one additional good or incremental unit of service.

Detailed explanation-4: -Social benefits (or social transfers) are transfers made (in cash or in kind) to persons or families to lighten the financial burden of protection from various risks.

Detailed explanation-5: -As long as the consumer’s marginal benefit is greater than their marginal cost, they will purchase the good. Therefore, the maximum amount a consumer is willing to pay is equal to their marginal benefit.