The principle of decreasing marginal benefit indicates that as the consumption of magazines increases, a person
A) is willing to forego more of other goods or services to acquire another magazine.
B) willing to pay less for another magazine.
C) obtains less satisfaction than if he or she had fewer magazines.
D) is willing to pay increasingly more for another magazine.

Question

Quizplus · Accepted Answer

The principle of decreasing marginal benefit states that as consumption of a good or service increases, the additional satisfaction (or benefit) that a person receives from each additional unit consumed decreases. This means that the person becomes less willing to pay the same price for each additional unit consumed. Therefore, as the consumption of magazines increases, the person is likely to be willing to pay less for each additional magazine, indicating choice B is the best option.

The Principle of Decreasing Marginal Benefit Indicates That as the Consumption