The marginal benefit curve is:
A)upward sloping because of increasing marginal opportunity costs.
B)upward sloping because successive units of a specific product yield less and less extra utility.
C)downward sloping because of increasing marginal opportunity costs.
D)downward sloping because successive units of a specific product yield less and less extra utility.

Question

Quizplus · Accepted Answer

The marginal benefit curve is downward sloping because of the law of diminishing marginal utility, which states that as a consumer consumes more and more units of a specific product, the extra utility obtained from each additional unit decreases. Therefore, the marginal benefit of consuming each additional unit is lower than the previous unit, resulting in a downward sloping marginal benefit curve.

The Marginal Benefit Curve Is