Definition of Marginal benefit:
The additional benefit arising from a unit increase in a particular activity.
An increase in an activitys overall benefit that is caused by a unit increase in the level of that activity, all other factors remaining constant. Also called marginal utility.
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 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.
How to use Marginal benefit in a sentence?
- The marginal benefit generally decreases as consumption increases.
- Sometimes there may only be a marginal benefit to taking on a new project and you may want to focus time elsewhere.
- The marginal benefit was small but it was steady and consistent so with enough volume we were able to increase our market share.
- Some projects may only be a marginal benefit to your company and you must decide whether to keep doing them.
- For any given level of deforestation the marginal benefits to the farmer of clearing decreases with the cumulative area logged.
- A marginal benefit is also the additional satisfaction that consumer receives when the additional good or service is purchased.
- Marginal benefits are the maximum amount a consumer will pay for an additional good or service.
Meaning of Marginal benefit & Marginal benefit Definition