Question

Help with Economics

Answer 1

@Vocaloid @Hero

Answer 2

Discuss MB and MC to society (local community).

Answer 3

Marginal Benefits is the additional benefit a customer earns from any activity
Marginal costs are additional costs used for any activity. An example of MB would be spending $15 for pizza–the MB is pizza. The marginal cost here would be the input costs of making the pizza. MB and MC are used in businesses to predict the maximum benefits a corporation can earn. For this, marginal analysis is used, by analyzing all the opportunity costs, marginal costs, and the marginal benefits. Marginal analysis is also used to eliminate the impacts of scarcity in economics.

Using a production possibilities frontier (PPF) we can evaluate the relation between the MB and MC. When MC=MB, the welfare is said to be maximized and the activity is said to have allocative efficiency.

But usually in economics, we try our best to consider data in ceteris paribus, meaning all other conditions constant. However, in real life scenarios, corporations also have to consider marginal social costs, marginal private costs, marginal social benefits, and marginal private benefits.