In general, as the consumption of a good or service increases, the marginal benefit from consuming that good or service
A) stays the same.
B) increases.
C) decreases.
D) at first increases and then decreases.
E) at first decreases and then increases.

Question

Quizplus · Accepted Answer

As consumption of a good or service increases, the additional benefit or satisfaction that a consumer derives from each additional unit consumed tends to decrease. This is known as the law of diminishing marginal utility, which states that the marginal benefit from consuming a good or service decreases as the quantity consumed increases. Therefore, the correct answer is C, as the marginal benefit decreases as consumption increases.

In General, as the Consumption of a Good or Service