Diminishing marginal benefit

Question

Quizplus · Accepted Answer

Diminishing marginal benefit refers to the idea that as a consumer purchases more of a good, the additional benefit received from each additional unit decreases. This is reflected in the downward slope of the demand curve, as consumers are willing to pay less for each additional unit. It does not affect the supply curve, as it pertains to consumer behavior, not production. It may also impact a buyer's decision, as they may decide to stop purchasing additional units once the marginal benefit is outweighed by the marginal cost.

Diminishing Marginal Benefit