The more we have of a good or service, the smaller is its marginal benefit and the less we are willing to pay for an additional unit of it.

Question

Quizplus · Accepted Answer

This statement reflects the economic principle of diminishing marginal utility, which posits that as a person consumes more of a good or service, the additional satisfaction (marginal benefit) gained from consuming an additional unit decreases, leading to a lower willingness to pay for more of it.

The More We Have of a Good or Service, the Smaller