Marginal Benefit

Is it worth it?


The additional or extra benefit or satisfaction that a person receives when they consume an extra unit of a good or service.

What is Marginal Benefit?

In economics, there is a limit to how much a consumer is willing to pay for a good or service. This is because the consumer always wants to buy a product which is in a reasonable price range for them. They want to get the most out of their good or service, and they do not want to pay potentially too much for something that "is not worth it." Consumers and producers must always take into account how much they are willing to pay for something, and whether or not that payment will benefit them in the future. For example, a business just starting up will want to buy something to increases their productivity, but they will not want to spend so much money that it will take a while for them to recover what they spend. They want to reap as many benefits from an action as possible with as little consequences or drawbacks as possible. This is the same for both businesses and consumers.