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 only
B) I and II
C) II only
D) Neither I nor II

Question

Quizplus · Accepted Answer

Marginal benefit typically refers to the additional satisfaction or utility a consumer receives from consuming an additional unit of a good or service, not the benefit firms receive. Additionally, marginal benefit usually decreases as more of a good is consumed due to the law of diminishing marginal utility, not increases.

Which of the Following Is True Regarding Marginal Benefit