What is Marginal Benefit? What is the marginal utility

Marginal returns. It refers to the increase in revenue from the sale of one unit of product, that is, the gain from the sale of the last unit of product. It can be positive or negative. Marginal return is an important concept in vendor analysis. A necessary condition for maximizing profits.

Yes, the marginal benefit equals the marginal cost.

Under the conditions of perfect competition, the output change of any manufacturer will not affect the first level, the elasticity of demand is unlimited for individual manufacturers, the total income increases in proportion to the increase in sales volume, and the marginal income is equal to the average income, which is equal to the first level. Under the conditions of imperfect competition (monopolistic competition), the sales volume of manufacturers is inversely proportional to the first.

The formula for calculating the marginal return

The formula for calculating the marginal return can be written as:

Marginal return = selling price - variable cost.

The total marginal revenue is equal to the total sales revenue.

Less Total Variable Cost:

Total Marginal Revenue = Total Sales Revenue Total Variable Cost.

The marginal return per unit is equal to the unit sales revenue minus the unit cost:

Unit Marginal Revenue = Unit Sales Revenue Unit Cost.

The marginal rate of return is the ratio of benefits obtained after reflecting the sales revenue, and the ratio can be calculated by the following two methods:

Marginal rate of return Total marginal return Total sales revenue Unit marginal return Unit sales revenue.

The above content refers to Encyclopedia - Marginal Benefits.

Marginal benefit is a concept in economics, which can be roughly understood in this way, that is, in order to pursue the greatest profit, the economic entity in a market has expanded production many times, and there will be a difference between the benefits generated by each investment and the benefits generated by the previous investment, and this difference is the marginal benefit. If this marginal benefit shows an increasing trend, then the benefits obtained from the investment are greater and greater each time, and the investment is successful. However, the plant and production equipment of each economic entity are fixed in the short term, so that the pursuit of maximum profits can only be obtained by increasing the input of labor, and when the labor force exceeds the need for production equipment, some people's work is in a state of inefficiency, and the marginal benefits at this time will not always maintain a growth trend, but begin to decline after reaching an equilibrium point.

From this, a well-known truth is derived: in order to obtain maximum profits, an enterprise cannot only rely on increasing labor force to achieve, but also needs to introduce advanced equipment and improve management level.

Marginal benefits. It's the marginal benefit versus the marginal cost.

of comparisons. The additional income received by the seller for putting an additional unit of production in the market compared with the additional cost paid. When this additional income is greater than the additional cost, the seller expands production; When this additional income is equal to the additional cost, the seller can get the maximum profit, that is, the maximum profit point is reached; If production is expanded, the additional income may be less than the additional cost, and the seller will lose money.

Here's an exampleTo illustrate the easiest concept to understand with a simple example, Western economics.

It also says so.

You are very hungry, and you only have money to buy 5 steamed buns to eat.

The marginal benefit of the first steamed bun is the greatest, because you are the hungriest and most in need at that time, and you are willing to buy it if you spend a little more; The marginal benefit of the second one decreases, because there is 1 steamed bun in the stomach, and I am not so hungry. The marginal benefit of the fifth one is the smallest, because you are almost full at that time, and if the steamed buns are expensive, you will definitely not buy them. The benefit generated by the price of each steamed bun spent is the value of feeling spent on it.

Descending from the first to the last! That's the marginal benefit.

Marginal benefit refers to the increase in revenue from the sale of one unit of product, that is, the gain from the sale of the last unit of product. It can be positive or negative. Marginal return is an important concept in vendor analysis.

A necessary condition for profit maximization is that the marginal benefit is equal to the marginal cost.

The marginal effect refers to the fact that when other inputs are fixed, the new output or benefit will gradually decrease when one input is continuously increased. That is, when the increase in input exceeds a certain level, the output per unit of additional input decreases.

Marginal utility, sometimes referred to as marginal contribution, is the first cause effect and the proximate cause effect in social perception. When the German psychologist Ebbinghaus studied the memory material, he found that because they were not affected by the preactive inhibition and the retroactive inhibition, respectively, people remembered the beginning and the end of the content more firmly, which is also applicable to the study of the laws of social perceptual processes in social psychology.

Marginal utility refers to the increase in the degree of satisfaction or the increase in utility brought by consumers when they increase the consumption of one unit of goods.

Formula = Increment of Total Utility Total Quantity Increment.

Diminishing marginal utility:

In a certain period of time, with the continuous increase in the quantity of a certain commodity consumed, the total utility obtained by consumers from it is increasing, but increasing at a decreasing rate, that is, the marginal utility is decreasing; When the consumption of goods reaches a certain level, the total utility reaches the maximum, the marginal utility is 0, and if the consumption continues to increase, the total utility will not increase, but will gradually decrease, and the marginal utility becomes negative.

Marginal utility. It refers to the degree of satisfaction that increases for each unit of consumption of a certain item. In marginal utility, the independent variable.

is the consumption of an item, and the dependent variable.

is the degree of satisfaction or utility. The change in utility caused by the change in consumption is the marginal utility.

Marginal utility refers to the new efficiency effect brought about by consumers adding one unit of goods or services within a certain period of time, that is, the increase in total utility. That is to say, all other things being equal, as the consumer's consumption of a certain good increases, the degree of satisfaction he receives from each consumption unit of the continuous increase of that good is called marginal utility.

The principle of diminishing marginal utility refers to the fact that when consumers consume goods, the utility of each unit of goods to consumers is different, and they show a decreasing relationship.

**：<>

Marginal cost refers to the variable costs of workers' wages, raw materials, and fuel that need to be increased by a unit of output at any level of output.

For example, when producing 100 units of a product, the total cost is 10,000 yuan, and the cost per unit product is 100 yuan. If 101 are produced, the total cost is 10,090 yuan.

That is: marginal cost = (10090-10000) (101-100) = 90 yuan.