The marginal benefit of a good or service
A) remains constant as more is consumed.
B) increases as more is consumed.
C) decreases as less is consumed
D) decreases as more is consumed

Question

Quizplus · Accepted Answer

The marginal benefit of a good or service will typically decrease as more is consumed. This is due to the law of diminishing marginal utility, which states that as someone consumes more of a good or service, the additional satisfaction (or marginal benefit) they receive from each additional unit of the good or service will eventually start to decrease. Eventually, the marginal benefit may even become negative, meaning that the individual is no longer willing to consume more of the good or service due to its decreased usefulness or negative side effects.

The Marginal Benefit of a Good or Service