As consumption of a good increases,
A)marginal benefit increases.
B)marginal benefit decreases.
C)marginal benefit equals price.
D)marginal benefit increases or decreases depending on price.
E)the price of the good falls.

Question

Quizplus · Accepted Answer

According to the law of diminishing marginal utility, as consumption of a good increases, the marginal benefit (or utility) gained from consuming each additional unit of the good decreases. Therefore, marginal benefit decreases as consumption increases.

As Consumption of a Good Increases