Which of the following best defines marginal benefit?

• A. The total benefit received from consuming all units of a good or service.
• B. The additional satisfaction or utility gained from consuming one more unit of a good or service.
• C. The difference between total cost and total benefit.
• D. The cost incurred from producing one more unit of a good or service.

Answer: (B)

Verified step by step guidance

1. Understand that marginal benefit refers to the additional satisfaction or utility a consumer receives from consuming one more unit of a good or service.
2. Recognize that total benefit is the overall satisfaction from all units consumed, not just the extra unit, so marginal benefit focuses on the incremental change.
3. Note that marginal benefit is different from cost concepts; it specifically measures the gain in utility, not the cost incurred.
4. Recall the formal definition: Marginal Benefit (MB) = Change in Total Benefit (\Delta TB) divided by Change in Quantity (\Delta Q), expressed as \(MB = \frac{\Delta TB}{\Delta Q}\).
5. Use this understanding to identify that the best definition among the options is the one describing the additional satisfaction or utility from consuming one more unit.