Which term describes 'The additional benefit to a consumer from consuming one more unit of a good or service'?

Which term describes 'The additional benefit to a consumer from consuming one more unit of a good or service'?

• A. Marginal Benefit
• B. Command
• C. Resources
• D. Economics

Answer: (A)

The main idea is marginal benefit: the extra benefit a consumer gets from consuming one more unit of a good or service. It captures how much additional satisfaction or utility the next unit provides, not the total benefit from all units. In practice, people decide how much to buy by comparing this extra benefit to the extra cost of that unit. They keep purchasing as long as the marginal benefit exceeds the marginal cost, and stop when those two are about equal. This also fits with diminishing marginal utility, where the extra benefit from each additional unit tends to fall as you consume more. The other terms don’t describe this concept: command is about orders or authority, resources are inputs used to produce goods, and economics is the study of how people allocate scarce resources.

The main idea is marginal benefit: the extra benefit a consumer gets from consuming one more unit of a good or service. It captures how much additional satisfaction or utility the next unit provides, not the total benefit from all units. In practice, people decide how much to buy by comparing this extra benefit to the extra cost of that unit. They keep purchasing as long as the marginal benefit exceeds the marginal cost, and stop when those two are about equal. This also fits with diminishing marginal utility, where the extra benefit from each additional unit tends to fall as you consume more. The other terms don’t describe this concept: command is about orders or authority, resources are inputs used to produce goods, and economics is the study of how people allocate scarce resources.