The principle that "as more of a good is consumed, its extra benefit declines" is known as
A) the law of demand.
B) the law of diminishing marginal product.
C) the law of diminishing marginal utility.
D) the law of comparative advantage.

Question

Quizplus · Accepted Answer

The principle that "as more of a good is consumed, its extra benefit declines" is known as the law of diminishing marginal utility. It states that as a consumer increases consumption of a good or service, the satisfaction derived from each additional unit of the good or service decreases.

The Principle That "As More of a Good Is Consumed