AP MicroeconomicsCore Economic Concepts
Marginal Benefit
Marginal benefit is the additional satisfaction or utility a consumer enjoys from consuming one more unit of a good or service.
Marginal benefit, also known as marginal utility, tends to decrease as more of a good is consumed. This is the concept of diminishing marginal utility. A consumer will continue purchasing a good as long as the marginal benefit exceeds the marginal cost (price). The optimal consumption level is where MB = MC.