The MB curves in the diagram slope downward because of the law of
A) conservation of matter and energy.
B) diminishing returns.
C) diminishing marginal utility.
D) increasing cost.

Question

The MB curves in the diagram slope downward because of the law of
A) conservation of matter and energy. 
B) diminishing returns. 
C) diminishing marginal utility. 
D) increasing cost.

Quizplus · Accepted Answer

The MB curves slope downward due to diminishing marginal utility, meaning that each additional unit of a good consumed yields less and less additional satisfaction. As more of the good is consumed, the satisfaction gained from each additional unit decreases. This leads to a downward sloping marginal benefit curve.

The MB Curves in the Diagram Slope Downward Because of the Law