Marginal Private Benefit (MPB)
Definition
Marginal Private Benefit refers to the additional benefit or utility that an individual receives from consuming one more unit of a good or service. It represents the personal gain or satisfaction obtained by the consumer.
Analogy
Think of MPB as the extra happiness you get from eating another slice of pizza. Each additional slice brings you more enjoyment, but at some point, the marginal private benefit starts to decrease because you become full and less satisfied with each additional slice.
Related terms
Marginal Social Benefit (MSB): The additional benefit received by society as a whole from consuming one more unit of a good or service.
Total Private Benefit (TPB): The sum of all individual benefits received from consuming a certain quantity of a good or service.
Consumer Surplus: The difference between what consumers are willing to pay for a product and what they actually have to pay.
"Marginal Private Benefit (MPB)" appears in:
Are you a college student?
Study guides for the entire semester
200k practice questions
Glossary of 50k key terms - memorize important vocab
Resources
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.