Diminishing marginal benefits is reflected in
A)a consumer's ability to pay
B)a consumer's willingness to pay
C)a producer's ability to produce
D)a producer's willingness to produce

Question

Quizplus · Accepted Answer

Diminishing marginal benefits means that with each additional unit of a good or service consumed, the satisfaction or benefit derived from it decreases. This decrease in satisfaction is reflected in a consumer's willingness to pay less for each additional unit, hence the correct choice is B - a consumer's willingness to pay. A producer's ability or willingness to produce is not relevant to this concept.

Diminishing Marginal Benefits Is Reflected in