Charlie's consumer surplus from the first slice of pizza he buys is greater than the consumer surplus from the second slice because of
A) decreasing marginal benefit.
B) increasing marginal cost.
C) decreasing marginal cost.
D) increasing marginal benefit.

Question

Quizplus · Accepted Answer

The concept of decreasing marginal benefit explains why Charlie's consumer surplus from the first slice of pizza he buys is greater than from the second slice. This principle states that as a consumer consumes more of a good, the additional satisfaction (benefit) gained from consuming an additional unit decreases.

Charlie's Consumer Surplus from the First Slice of Pizza He