The principle of decreasing marginal benefit implies that the
A) additional benefit from obtaining one more of a good or service increases as more is consumed.
B) total benefit from obtaining more of a good or service decreases as more is consumed.
C) additional benefit from obtaining one more of a good or service decreases as more is consumed.
D) total benefit from obtaining more of a good or service remains the same as more is consumed.

Question

Quizplus · Accepted Answer

The principle of decreasing marginal benefit explains that as a consumer consumes more units of a good or service, the additional benefit or utility gained from consuming one more unit of that good or service will eventually decrease. In other words, the first unit consumed will provide the highest utility, and each subsequent unit consumed will provide less and less additional utility until a point is reached where the consumer no longer derives any additional satisfaction from consuming more of the good or service. This principle is often used to explain why demand curves slope downwards, as consumers are willing to pay less for each subsequent unit due to the decreasing marginal benefit they receive.

The Principle of Decreasing Marginal Benefit Implies That the