What typically happens to benefits as the amount of an activity is increased?
A)Total benefit remains constant.
B)Marginal benefit decreases.
C)The marginal benefit changes only if the marginal cost changes.
D)Marginal benefit increases.
E)Marginal benefit remains constant.

Question

Quizplus · Accepted Answer

Typically, as the amount of an activity is increased, the additional benefit obtained from each additional unit (marginal benefit) diminishes. This is known as the law of diminishing marginal utility. Therefore, choice B is correct as it states that the marginal benefit decreases.

What Typically Happens to Benefits as the Amount of an Activity