The additional benefit to a consumer from consuming one more unit of a good or service
A)is equal to consumer surplus.
B)is equal to the opportunity cost of consuming the good or service.
C)is equal to marginal benefit.
D)is equal to economic surplus.

Question

Quizplus · Accepted Answer

The additional benefit to a consumer from consuming one more unit of a good or service is known as marginal benefit. It is the maximum amount that a consumer is willing to pay for an additional unit of the good or service. It is not equal to consumer surplus, which is the difference between the total amount a consumer is willing to pay for a good or service and the price they actually pay. It is also not equal to the opportunity cost of consuming the good or service, which is the value of the next best alternative that is forgone. Economic surplus refers to the sum of consumer surplus and producer surplus. Therefore, the best choice is C, which is marginal benefit.

The Additional Benefit to a Consumer from Consuming One More