marginal benefit

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The additional benefit from an increase in an activity. This is the addition to total benefit resulting from a unit increase if it varies discretely, or the addition to total benefit per unit of the increase, if it varies continuously. Marginal private benefit is marginal benefit accruing to the person or firm deciding on the scale of the activity, excluding any external benefits; marginal social benefit includes external benefits as well as private benefit accruing to the decision-taker.

Subjects: Economics.

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