The marginal benefit of an action:
A) equals the additional benefit produced by extra units of X and tends to decrease as X increases.
B) equals the additional benefit produced by the total units of X and tends to increase as X increases.
C) equals the additional benefit produced by the total units of X and tends to decrease as X increases.
D) equals the additional benefit produced by extra units of X and tends to increase as X increases.

Question

Quizplus · Accepted Answer

Marginal benefit refers to the additional benefit gained from consuming or producing one more unit of a good or service. It typically decreases as more units are consumed or produced, due to the law of diminishing marginal utility. This means that as you consume more of a good, the satisfaction (benefit) you get from each additional unit tends to decrease.

The Marginal Benefit of an Action