what is the best definition of marginal benefit?\nthe possible income from producing an additional item\nthe…

what is the best definition of marginal benefit?\nthe possible income from producing an additional item\nthe price of producing one additional unit of a good\nthe additional income gained from selling an additional good\nthe financial gain from business activity minus expenses

what is the best definition of marginal benefit?\nthe possible income from producing an additional item\nthe price of producing one additional unit of a good\nthe additional income gained from selling an additional good\nthe financial gain from business activity minus expenses

Answer

Brief Explanations:

Marginal benefit refers to the extra benefit a firm or individual gets. When a firm sells an additional good, the extra income from that sale is the marginal benefit.

  • The first option “the possible income from producing an additional item” is not precise as marginal benefit is about the gain from selling (not just producing).
  • The second option “the price of producing one additional unit of a good” is about marginal cost (cost side, not benefit).
  • The fourth option “the financial gain from business activity minus expenses” is about profit (total concept, not marginal).

Answer:

the additional income gained from selling an additional good