Marginal benefit is a dollar amount that a consumer is willing to pay for an additional unit of a product or service. Because of marginal benefit, the consumer receives additional satisfaction. A producer may try to create artificial demand by limiting the production of a product or access to a service. Driving up demand means consumers are willing to pay more, increasing the product’s or service’s marginal benefit to consumers. Marginal benefit is related to marginal utility but they are not the same. Marginal benefit is a dollar measurement, while the marginal utility is a use measurement.
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