What does marginal benefit mean?

Question 1: Why is the marginal benefit called "marginal"? In economics, marginal benefit refers to the utility brought by new goods per unit, that is, the margin of production or consumption.

For example, marginal cost refers to the cost per unit of newly produced goods. Usually the marginal cost is lower than the average cost, because the average cost includes the fixed cost. Marginal income refers to the new utility obtained from each unit of new goods.

Simply put, marginal utility is the new utility (satisfaction or income) that consumers get from each new unit of goods or services. It is generally assumed that the marginal utility decreases with the increase of consumption, so the10th doughnut in one day is not as satisfying as the first and second doughnuts.

Question 2: What are marginal costs and marginal benefits? Marginal income is generally related to marginal cost. For example, if you spend four hours studying and four hours surfing the Internet every day, for a total of eight hours, then your grade is the twentieth in your class, and then you spend an extra hour studying, then you only have three hours surfing the Internet. However, the consequence of this is that your ranking in the class rose to 15, and then your ranking rose by five places, which means that your marginal income decreased by one hour.

Marginal benefit is the extra income you get every time you increase the output of something. When the marginal revenue is greater than the marginal cost, the producer will increase the output. The more marginal revenue increases, the closer it is to marginal cost. When the marginal revenue equals the marginal cost, the output has increased to the maximum, so the profit is the largest (I am used to understanding this problem from the perspective of producers. . )

About the increase and decrease of your input, it is like an arch curve, which increases before reaching the peak, which is called maximum output. When the output reaches the maximum, the input will begin to decrease.

Question 3: Can you give me some simple examples? What does marginal benefit mean? Marginal capital. The main thing is what margins mean. For example, the marginal income of 100 point: the margin here can be understood as synonymous with the price difference.

You are hungry, and you only have money to buy five steamed buns.

The marginal benefit of the first steamed bread is the greatest, because you were the hungriest and most in need at that time, and you were willing to spend more money to buy it; The marginal benefit of the second one is decreasing, because there are 1 steamed bread in the stomach ... not so hungry. The marginal income of the fifth one is the smallest, because you are almost full at that time. If steamed bread is expensive, you won't buy it. The profit of flower 1 steamed stuffed bun is the value you feel you have paid. Decreasing from the first to the last! This is the marginal benefit.

Marginal capital is the optimal cost of capital, and the margin here can be understood as critical point and optimal, as shown in the following figure. The intersection of the two dotted lines is the marginal cost of capital.

Question 4: Do marginal income and marginal income mean the same thing? Marginal benefit is a commonly used term in modern economics.

I also forgot the collective meaning.

Something like this: "In order to maximize profits, the economic entities in a market have been expanded and reproduced many times, and the benefits generated by each investment will be different from those generated by the last investment. This difference is the marginal income. "

Marginal income: "the increase in income that an enterprise can obtain by selling extra units of products." Under the condition of perfect competition, marginal revenue equals price. Under the condition of imperfect competition, the marginal revenue is lower than the price. The reason is that the price of all products sold before this unit must be reduced for this unit that increases sales. "

Question 5: What do you mean by marginal revenue and marginal cost? Marginal income refers to the increased income for every unit product sold, that is, the income obtained by selling the last unit product. It can be positive or negative. Marginal income is an important concept in enterprise analysis. A necessary condition for profit maximization is that marginal revenue equals marginal cost.

Under the condition of perfect competition, the output change of any manufacturer will not affect the price level, and the demand elasticity is infinite for a single manufacturer. Total income increases proportionally with the increase of sales volume, and marginal income is equal to average income and price. Under the condition of imperfect competition (monopoly competition), the sales volume of manufacturers is inversely proportional to the price. If the elasticity of demand is greater than 1, that is, the percentage of sales increase is faster than the percentage of price decrease, the total income increases with the increase of sales, although it does not increase in the same proportion, but the average income decreases and the marginal income is zero; If the demand elasticity is less than 1, the total income will decrease with the increase of sales volume, the average income will decrease faster, and the marginal income will be negative. Marginal cost Marginal cost is actually the variable cost of workers' wages, raw materials and fuel needed to increase a unit output at any output level.

Theoretically, the marginal cost is how much the total cost will increase when the output increases 1 unit. Generally speaking, with the increase of output, the total cost decreases and the marginal cost decreases, which means the scale effect.

Marginal cost refers to the change of total cost caused by increasing or decreasing a unit output at a certain output level. Usually only variable costs. Marginal cost is used to judge whether it is economical to increase or decrease output. This is a common term in management accounting and business decision. For example, when producing 100 pieces of a certain product, the total cost is 5000 yuan, and the unit product cost is 50 yuan. If the total cost of producing 10 1 piece is 5040 yuan, the cost of adding a product is 40 yuan, that is, the marginal cost is 40 yuan. When the actual output does not reach a certain limit, the marginal cost decreases with the expansion of output; When the output exceeds a certain limit, the marginal cost increases with the expansion of output. Because, when the output exceeds a certain limit, the total fixed cost will increase. It can be seen that the important factor affecting marginal cost is the phased increase of total fixed cost caused by the continuous expansion of output exceeding a certain limit (production capacity).

When the income (unit output price) increased by increasing a unit output is higher than the marginal cost, it is economic; On the contrary, it is not cost-effective. Therefore, any increase in the income of a unit of output can not be lower than the marginal cost, otherwise there will be losses; As long as the income of increasing a production can be higher than the marginal cost, even if it is lower than the total average unit cost, it will increase profits or reduce losses. Therefore, calculating marginal cost plays an important role in product decision-making. Microeconomics theory holds that when the output is increased to the point where the marginal cost equals the marginal income, the output with the maximum profit can be obtained for the enterprise.

The role of marginal cost:

The function of marginal cost is to study the law of cost change, cooperate with marginal income and calculate marginal profit.

When marginal revenue-marginal cost = marginal profit > 0, the scheme is feasible.

When marginal revenue-marginal cost = marginal profit < 0, the scheme is not feasible.

However, the textbook does not involve marginal income and marginal profit, which is its deficiency.

Calculation of marginal cost:

There are many methods to calculate the marginal cost, and the method used in the textbook is not the best, and it is inconsistent with the concept. But from the point of view of the exam, we should also master it.

Question 6: What is the maximization of marginal benefit? Marginal benefit: the benefit that a project or equipment can increase per unit scale (such as storage capacity or installed capacity) under a certain scale. We should not only increase the income, but also maximize the increased income. Marginal benefit Marginal benefit is a concept in economics, which can be roughly understood as follows: in order to maximize profits, economic entities in a market expand production many times, and there will be a difference between the benefits generated by each investment and the benefits generated by the last investment, which is called marginal benefit. It is the easiest to understand this concept with a simple example, which is also explained in western economics: you are hungry and you only have money to buy five steamed buns. The marginal benefit of the first steamed bread is the greatest, because you were the hungriest and most in need at that time, and you were willing to spend more money to buy it; The marginal benefit of the second one is decreasing, because there are 1 steamed bread in the stomach ... not so hungry. The marginal income of the fifth one is the smallest, because you are almost full at that time. If steamed bread is expensive, you won't buy it. The profit of flower 1 steamed stuffed bun is the value you feel you have paid. Decreasing from the first to the last! This is the marginal benefit.

Question 7: What is marginal benefit and how to calculate it? Marginal benefit is the income increased by selling one more product. If the price remains the same, this is of course income. If the price changes, it is the price plus sales multiplied by the increase in the price of selling a product (negative, of course). Just use a mathematical formula.

Question 8: What is the difference between marginal revenue and marginal revenue? Differences in definitions:

Marginal cost refers to the total cost increment per unit of new output.

Marginal cost = total cost change/output change

A necessary condition for profit maximization is that marginal revenue equals marginal cost. Marginal income refers to the income increased by increasing the sales of a unit product; Marginal income = selling price-variable cost

Marginal income has a decreasing law. When a variable factor of production is put into one or several constant factors of production, the initial increase of this factor of production will increase the output, but when it exceeds a certain limit, the increased output will decrease. Under the condition of imperfect competition (monopoly competition), the sales volume of manufacturers is inversely proportional to the price. The marginal cost will first decrease and then increase with the increase of output. When the income increased by increasing a unit output is higher than the marginal cost, it is cost-effective; On the contrary, it is not cost-effective.

Question 9: What does the marginal revenue mr mean? Marginal revenue MR skeleton refers to the revenue increase Mr = Δ tr/Δ y obtained by the manufacturer by increasing the sales volume of a unit product.

Marginal income: the income of the manufacturer is the sales income of the manufacturer. The income of manufacturers can be divided into total income, average income and marginal income. Marginal income refers to the increase of total income obtained by manufacturers by increasing the sales of one unit of products. The formula is:

Mr (q) = δ tr (q)/δ q or MR= dTR(Q)/dQ.