27 Marginal Benefits

This video provides a clear explanation of key economic concepts: private benefit, external benefit, and social benefit. It details how private benefit accrues directly to the individual making a decision, while external benefit is gained by third parties not involved in the transaction. Social benefit is then defined as the sum of these two. The session further breaks down marginal benefits, including marginal private benefit and marginal external benefit, illustrating how diminishing marginal utility affects the marginal private benefit curve. The relationship between these concepts and their graphical representation is thoroughly explored, highlighting situations with positive and negative externalities. Visit AxiomTutoring.com and subscribe to @AxiomTutoringCourses.