The marginal benefit from a good is the maximum amount a person is willing to pay for
A) one more unit of the good.
B) all of the units of the good the person consumes divided by the number of units he or she purchases.
C) one more unit of the good divided by the number of units purchased.
D) all of the good the person consumes.

Question

Quizplus · Accepted Answer

Marginal benefit is the additional benefit received from consuming one more unit of a good. It is the highest price a person is willing to pay for an additional unit of the good. Therefore, the maximum amount a person is willing to pay for one more unit of the good is the marginal benefit.

The Marginal Benefit from a Good Is the Maximum Amount