Nathan drinks three cups of coffee per day.The marginal benefit that he enjoys from drinking the third cup is
A) less than the marginal benefit that he receives from drinking the second cup.
B) the same as the total benefit from drinking all three cups minus the total benefit of drinking the first two cups.
C) both a and b.
D) greater than the marginal benefit that he receives from drinking the second cup.
E) none of the above.

Question

Quizplus · Accepted Answer

The marginal benefit typically decreases as consumption increases, so the benefit from the third cup is less than from the second (A). The marginal benefit of the third cup is also exactly the difference between the total benefit of three cups and the total benefit of two cups (B).

Nathan Drinks Three Cups of Coffee Per Day