What are marginal cost and marginal benefit in layman's terms?

Economics Dec 15, 2020

Expert Solution

Marginal cost. It is the additional cost that one incurs to produce one more unit of a good for consumers consumption. The cost to buy an extra unit of a product.

Marginal benefit. It is defined as an additional gain from adding one more unit of a good. Shows the amount of satisfaction received from consuming the last unit of a good.

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