Saturday, October 31, 2009

Marginal Benefit

Textbook Definition: The additional benefit gained by increasing consumption by one unit. Marginal benefit can be used in other contexts, too. For example, a the marginal benefit to a firm is called "marginal revenue"--the extra revenue gained by increasing production by one unit.

She-conomic Definition: The extra "happiness" or "satisfaction" obtained by going out with a guy one more time.

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