Ceteris paribus, as more and more of an activity is done, the additional benefits derived from the activity decreases represents
A)the law of increasing marginal costs
B)the law of diminishing marginal costs
C)the law of increasing marginal benefits
D)the law of diminishing marginal benefits

Question

Quizplus · Accepted Answer

This is known as the law of diminishing marginal benefits, which states that as more and more of an activity is done, the additional benefits derived from that activity will eventually decrease. This is due to the fact that the satisfaction, utility or happiness that is derived from each additional unit or increment of the activity decreases over time, resulting in diminishing marginal benefits.

Ceteris Paribus, as More and More of an Activity Is