Microeconomics: Is there a difference between marginal utility and marginal benefit?

Economics Dec 15, 2020

Expert Solution

Marginal utility and marginal benefit are often used interchangeably. They both measure the additional benefit or happiness you get from the consumption of an additional unit of a good. The difference is largely one of degree. Utility is usually measured in utils and is relative to individual people. Benefit is usually measured in dollars and can be more easily compared.

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