Which of the following is TRUE regarding marginal benefit?
I. The marginal benefit curve shows the benefit firms receive by producing another unit of a good.
II. Marginal benefit increases as more of a good is consumed.
A) I and II
B) II only
C) I only
D) neither I nor II

Question

Quizplus · Accepted Answer

The marginal benefit curve shows the benefit consumers receive from consuming an additional unit of a good, not firms. Marginal benefit typically decreases as more of a good is consumed due to the law of diminishing marginal utility.

Which of the Following Is TRUE Regarding Marginal Benefit