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) I only
C) II only
D) neither I nor II

Question

Quizplus · Accepted Answer

The marginal benefit curve typically shows the benefit consumers receive from consuming an additional unit of a good, not the benefit to firms from producing it. 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? I)