Customers' willingness to pay for a product's marginal benefit is defined as value.
- The marginal benefit of a good or service is the amount of pleasure or satisfaction that customers gain from a one-unit increase or reduction in consumption. There are three types of marginal utility.
- Imagine you're selling a $50 pair of jeans. Nonetheless, you are willing to pay $60 for the pair. The marginal benefit in this situation is $60 due to the highest you are willing to spend for that pair of trousers. This implies that the marginal utility exceeds the selling price by $10.
- The marginal benefit is the maximum amount a buyer will pay for an extra item or service. A marginal utility is also the added enjoyment that a buyer receives when they purchase the additional item or service. The marginal benefit often decreases as consumption increases.
Thus this is the meaning of Marginal benefit/utility.
To learn more about Marginal Utility, refer: https://brainly.com/question/15050855
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