Marginal external benefit

Marginal external benefit,

Definition of Marginal external benefit:

  1. The per unit change that accrues when the activities of one group have a favorable effect on another group. For example, an economic think tank might be interested in assessing the marginal external benefit of having a more educated population on the level of corporate business profits.

  2. The additional benefit arising from a unit increase in a particular activity.

How to use Marginal external benefit in a sentence?

  1. For any given level of deforestation the marginal benefits to the farmer of clearing decreases with the cumulative area logged.

Meaning of Marginal external benefit & Marginal external benefit Definition