Efficiency equimarginal principle

The equimarginal principle, also known as the "equal marginal principle", states that when allocating resources among several uses, the most efficient result can be achieved by allocating resources until the marginal benefit associated with each use is equal. This principle is useful in making decisions in situations where there is a tradeoff between different uses of resources. For example, an economic decision maker may use this principle to determine the optimal combination of different inputs in order to achieve the greatest output. In such cases, the individual would continue to increase the use of an input until the marginal benefit (the benefit obtained from an additional unit of the input) is equalized for each of the inputs.