Which term describes the additional benefit gained from consuming one more unit of a good or service?

The term that describes the additional benefit gained from consuming one more unit of a good or service is known as marginal benefit. This concept is fundamental in economics, as it helps individuals and businesses make decisions about resource allocation and consumption.

When someone consumes an additional unit of a good or service, the marginal benefit represents the maximum amount they would be willing to pay for that extra unit. This benefit changes as more units are consumed; typically, individuals experience diminishing marginal utility, where the satisfaction gained from each successive unit tends to decrease. Understanding marginal benefit allows consumers to assess whether the cost of an additional unit is justified by the satisfaction or utility they will gain from it, thus aiding in optimal decision-making.

In contrast, marginal cost refers to the additional cost incurred from producing one more unit, while marginal revenue refers to the additional income generated from selling one more unit. Increased utility is a broader concept that encompasses overall satisfaction but does not specifically refer to the benefit from consuming an additional unit. Therefore, marginal benefit is the most accurate term in this context.