Marginal Benefit Calculator

Calculate Marginal Benefit







Formula

The formula to calculate the Marginal Benefit (MB) is:

\[ MB = \frac{B1 - B0}{Q1 - Q0} \]

Where:

What is Marginal Benefit?

The marginal benefit of a good is the change in monetary benefit that an item generates with a change in quantity. Analyzing the marginal benefit is useful because the relationship between monetary benefit and total quantity sold isn’t always linear.

Example Calculation

Let's assume the following values:

Using the formula to calculate the Marginal Benefit (MB):

\[ MB = \frac{B1 - B0}{Q1 - Q0} = \frac{500 - 300}{50 - 30} = \frac{200}{20} = 10 \]

The Marginal Benefit (MB) is 10.