In economics, what does the term marginal refer to?

The term marginal in economics refers to the additional benefit or cost associated with a one-unit change in the quantity of a good or service. It essentially focuses on the change that results from a small adjustment rather than looking at total or comprehensive amounts. When economists analyze decision-making, they often consider the marginal cost, which is the expense incurred from producing one more unit, or the marginal benefit, which is the additional satisfaction gained from consuming one more unit. This concept helps in determining optimal levels of production and consumption, as individuals and firms weigh the benefits of increasing their actions against the additional costs they would incur. By focusing on increments rather than totals, the marginal approach allows for a more nuanced understanding of economic behavior.