Question
upstudy study bank question image url

What helps a consumer determine the quantity of something to buy? marginal cost marginal error marginal benefit marginal comparison

Ask by Lawson Cervantes. in the United States
Feb 04,2025

Real Tutor Solution

Tutor-Verified Answer

Answer

**Marginal benefit** helps a consumer decide how much to buy.

Solution

Sign in to Unlock Answers for Free!

A Learning Platform Trusted by Millions of Real Students and Teachers.

star-icon Unlock

Reviewed and approved by the UpStudy tutoring team

Beyond the Answer

When consumers are deciding how much of a product to buy, they often weigh the marginal benefit against the marginal cost. Marginal benefit refers to the additional satisfaction or utility gained from consuming one more unit, while marginal cost represents the expense incurred for that additional unit. Making smart choices involves ensuring that the benefit received is greater than or equal to the cost incurred. A common mistake consumers make is ignoring diminishing returns; as they consume more of a good, the added satisfaction from each additional unit might decrease. For example, eating one slice of pizza might be delightful, but by the fourth or fifth slice, even the most devoted pizza lover may start feeling less thrilled. Balancing consumption with this principle can lead to better purchasing decisions.

Related Questions

Latest Economics Questions

Try Premium now!
Try Premium and ask Thoth AI unlimited math questions now!
Maybe later Go Premium
Study can be a real struggle
Why not UpStudy it?
Select your plan below
Premium

You can enjoy

Start now
  • Step-by-step explanations
  • 24/7 expert live tutors
  • Unlimited number of questions
  • No interruptions
  • Full access to Answer and Solution
  • Full Access to PDF Chat, UpStudy Chat, Browsing Chat
Basic

Totally free but limited

  • Limited Solution
Welcome to UpStudy!
Please sign in to continue the Thoth AI Chat journey
Continue with Email
Or continue with
By clicking “Sign in”, you agree to our Terms of Use & Privacy Policy