15. Marginal benefit
• Law of diminishing returns
• The extra value/benefit received from each
additional unit will eventually decline
• Law of decreasing marginal benefit
• Law of decreasing marginal utility
• Consumption
16. Marginal cost
• Law of increasing opportunity cost
• The extra cost of each additional unit will
eventually increase
17. Optimum
• The optimum level of an activity is the
quantity up to the point where the marginal
benefit equals the marginal cost.