ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Producers must understand the marginal benefit of making an additional unit which shows the possible gain. Marginal benefit is used in business and economics as a measurement of the change in benefits over the change in quantity. Possible gain is one example of benefit.

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: -Marginal revenue is the increase in revenue that results from the sale of one additional unit of output. While marginal revenue can remain constant over a certain level of output, it follows from the law of diminishing returns and will eventually slow down as the output level increases.

Detailed explanation-5: -The marginal benefit rule tells us that we can maximize the net benefit of any activity by choosing the quantity at which marginal benefit equals marginal cost. At this quantity, the net benefit of the activity is maximized.