asked 37.4k views
0 votes
A company charges $5 for its product. This monetary amount represents the of making an extra unit of the product.

asked
User Nelfin
by
7.5k points

2 Answers

5 votes

It's actually marginal benefit.

answered
User Kij
by
7.8k points
1 vote

In this case, that monetary amount represents the marginal benefit. This is defined as the amount of money someone is willing to pay to consume an extra unit of good or service. Usually it increases as a person consumes less and vice versa. We can understand this part by thinking that every time you use a product the value of the following one diminishes.

answered
User Krystel
by
8.4k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.