Marginal Benefit vs. Marginal Cost
Marginal benefit and marginal cost are two measures of how the cost or value of a product changes.
- The marginal benefit is a measurement from the consumer side. It is the maximum amount of money a consumer is willing to pay for an additional good or service.
- The marginal cost is a measurement from the producer side. It is the change in cost when an additional unit of a good or service is produced.
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