Marginal Benefit Là Gì


What is Marginal Benefit?

Marginal benefit is the highest amount that a buyer is willing khổng lồ pay for an extra unit of sản phẩm. It is also known as marginal utility, & it accompanies any extra unit purchased after the first unit. A marginal benefit may also be used lớn refer lớn the satisfaction that a customer receives after purchasing an additional good or service. It typically decreases as the rate of consumption increases.

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Marginal benefits come with diverse uses in business market retìm kiếm và sản phẩm advertising. A company needs to consider that each consumer evaluates the marginal cost of purchasing an extra unit compared to lớn the marginal benefit derived from it.

Companies may conduct retìm kiếm on marginal benefits and use that information in setting up a pricing strategy for specific units. The retìm kiếm may also be used khổng lồ determine the additional expenses needed for selling additional units.


Marginal benefit is the maximum amount that a customer is willing khổng lồ pay for an additional unit of good or service.
When the utilization of a unit decreases, the marginal benefit for a customer decreases.The first unit must be acquired for the marginal benefit lớn be applied lớn the additional unit purchased.

Understanding Marginal Benefits

The marginal benefit is highest during consumption of the first unit, & it decreases thereafter. This is due to lớn a decline in the incremental rate of satisfaction associated with the consumption of the additional unit.

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Types of Marginal Benefits

The following are the main types of marginal benefits:

1. Positive Marginal Benefit

The positive marginal benefit occurs when consuming more units of a product brings extra happiness to lớn the consumer. For example, for a consumer who likes eating ice cream, the second ice cream would bring additional joy. Hence, the marginal benefit of consuming extra ice cream is positive.

2. Negative Marginal Benefit

A negative marginal benefit occurs when the consumer consumes too much of a certain unit, and the additional unit of the product has negative sầu consequences. For example, eating the fifth slice of a sugary cake makes the person sichồng.

3. Zero Marginal Benefit

Zero marginal benefits happen after a customer consumes more of a unit that does not bring any additional measure of satisfaction nor any negative consequences. For example, a consumer may feel full after consuming three slices of a cake and wouldn’t feel any good by eating an extra slice. In such a case, the marginal benefit from consuming an extra cake is zero.

Maximizing Marginal Benefits

Most of the time, consumers are driven khổng lồ spkết thúc their money on units that yield the maximum amount of satisfaction at the lowest marginal cost. One way to maximize marginal benefits is to lớn purchase items that give the highest marginal benefit per unit. Food stores display prices on goods, which allows consumers to lớn compare the cost per unit và make purchase decisions within their budget.

Falling Marginal Benefit

Marginal benefits decline as the consumed quantity increases. Customers typically receive sầu less satisfaction from consumption as more units are being consumed. For example, when a consumer spends $7 for a $10 cake, the marginal benefit is $7. The more cakes the customer buys, the less they want lớn spend on the next cake.

The concept of marginal benefit explains how customers make choices according to their strict budgets. Generally, consumers will continue purchasing certain units whose marginal benefits are higher than the marginal cost. In a perfect market, the unit price is equal lớn the marginal costMarginal CostThe Marginal Cost of Production is the cost to lớn provide one additional unit of a sản phẩm or service. It is a fundamental principle that is. This explains why customers will buy multiple units of the same good until the marginal benefit falls khổng lồ the unit price.

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Law of Diminishing Marginal Benefits

Diminishing marginal benefits play a key role in a company’s pricing policy. It is because the price of a unit must be equal to lớn the customer’s marginal benefit & the willingness lớn buy the nhà cửa.

Additional Resources