In marginal analysis, the marginal benefit of an additional slice of pizza is best defined as the:

• A. average benefit per slice of pizza, computed as total benefit divided by the number of slices consumed
• B. fixed cost of producing a slice of pizza, regardless of how many slices are produced
• C. total benefit you receive from consuming all slices of pizza
• D. additional (incremental) benefit you receive from consuming one more slice, holding everything else constant

Answer: (D)

Verified step by step guidance

1. Understand the concept of marginal benefit: it refers to the additional benefit or satisfaction gained from consuming one more unit of a good or service, in this case, one more slice of pizza.
2. Distinguish marginal benefit from average benefit: average benefit is calculated by dividing the total benefit by the number of slices consumed, whereas marginal benefit focuses only on the incremental change from consuming one additional slice.
3. Recognize that fixed costs are unrelated to marginal benefit because fixed costs do not change with the quantity produced or consumed; marginal benefit is about the change in benefit, not cost.
4. Identify that total benefit is the overall satisfaction from all slices consumed, but marginal benefit isolates the effect of just one more slice, holding other factors constant.
5. Conclude that the marginal benefit is best defined as the additional (incremental) benefit you receive from consuming one more slice of pizza, which aligns with the principle of marginal analysis.