<blockquote>
<p>My lecturer said that it is also the maximum willingness to pay for an extra unit of good. Why so?</p>
</blockquote>
<p>This comes just from the definition. E.g. if my marginal benefit of one extra bottle of milk is 2e I would never pay more than 2e although I can be willing to pay less. I am not willing to pay more because at a current milk consumption simply the milk is not worth more. It is as simple as this.</p>
<blockquote>
<p>Besides that, I do not understand why the maginal benefit curve, instead of total benefit curve is plotted usually in economics.</p>
</blockquote>
<p>Marginal benefit curve is usually plotted because it is also equivalent to individual demand and when aggregated to market demand and demand &amp; supply analysis is one of the basic tools of economics.</p>
<p>Calculating total benefit makes sense in some areas of welfare economics, and there you might even find curves that plot it (although it is typically plotted as an area but this always depends on how you decide to define dimensions on graph). You will not see it that much in entry level textbooks because its not as important.</p>

CC BY-SA 4.0
2023-07-28T22:21:01.550Z
2023-07-28T22:21:01.550Z
1muflon1
<p>I am a beginner in economics and I have some concerns in demand and supply.</p>
<p>Marginal benefit is the additional benefit that a consumer gain from an extra unit of a good. When marginal benefit is equal to the market price, profit is maximized. My lecturer said that it is also the maximum willingness to pay for an extra unit of good. Why so?</p>
<p>Besides that, I do not understand why the maginal benefit curve, instead of total benefit curve is plotted usually in economics.</p>
<p>I think all these can be explained by differentiation. Can anyone help?</p>

CC BY-SA 4.0
2023-07-31T12:19:10.477Z
Unless by profit you mean consumer surplus, then this is not right: "When marginal benefit is equal to the market price, profit is maximized." A consumer's "profit" (in the sense of surplus - benefit less expenditure) is maximized where price equals marginal benefit. A firm's profit (revenue less cost) is maximized where price equals marginal cost. (Assuming in both cases it is not optimal to consume/produce nothing.)
smcc
<supply-and-demand>
About the basics in marginal benefit
Chemistry student
# About the basics in marginal benefit

(Asked by: username_0 on 2023-07-28)

I am a beginner in economics and I have some concerns in demand and supply.

Marginal benefit is the additional benefit that a consumer gain from an extra unit of a good. When marginal benefit is equal to the market price, profit is maximized. My lecturer said that it is also the maximum willingness to pay for an extra unit of good. Why so?

Besides that, I do not understand why the maginal benefit curve, instead of total benefit curve is plotted usually in economics.

I think all these can be explained by differentiation. Can anyone help?

**Tags:** supply-and-demand

> **Comments:**
> **username_1**: Unless by profit you mean consumer surplus, then this is not right: "When marginal benefit is equal to the market price, profit is maximized." A consumer's "profit" (in the sense of surplus - benefit less expenditure) is maximized where price equals marginal benefit. A firm's profit (revenue less cost) is maximized where price equals marginal cost. (Assuming in both cases it is not optimal to consume/produce nothing.)  

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## 1 answers

### Answer by username_2 on 2023-07-28. Score: 1 | Accepted answer

> My lecturer said that it is also the maximum willingness to pay for an extra unit of good. Why so?

This comes just from the definition. E.g. if my marginal benefit of one extra bottle of milk is 2e I would never pay more than 2e although I can be willing to pay less. I am not willing to pay more because at a current milk consumption simply the milk is not worth more. It is as simple as this.

> Besides that, I do not understand why the maginal benefit curve, instead of total benefit curve is plotted usually in economics.

Marginal benefit curve is usually plotted because it is also equivalent to individual demand and when aggregated to market demand and demand & supply analysis is one of the basic tools of economics.

Calculating total benefit makes sense in some areas of welfare economics, and there you might even find curves that plot it (although it is typically plotted as an area but this always depends on how you decide to define dimensions on graph). You will not see it that much in entry level textbooks because its not as important.


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