When the incremental satisfaction derived from an additional unit of a good or service decreases as more is consumed,it is known as:
A) consumer equilibrium.
B) marginal benefit.
C) diminishing marginal utility.
D) decreasing opportunity cost.

Question

Quizplus · Accepted Answer

The concept described in the question is known as diminishing marginal utility. It means that as more of a good or service is consumed, the additional satisfaction gained from consuming one more unit decreases. This concept is important in understanding consumer behavior and how they allocate their resources towards different goods and services.

When the Incremental Satisfaction Derived from an Additional Unit of a Good