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

Question

Quizplus · Accepted Answer

The principle of decreasing marginal benefit states that as more units of a good or service are consumed or obtained, the additional benefit or satisfaction gained from each additional unit decreases. This is because as people consume more of a good or service, they may become satiated or already have enough of that particular item, leading to a lower additional benefit from obtaining or consuming more. Therefore, the best choice is (E) - the additional benefit from obtaining one more unit of a good or service decreases as more of that good or service is consumed.

The Principle of Decreasing Marginal Benefit Implies That the