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.

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.