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

The marginal benefit refers to the additional benefit obtained 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.

The Marginal Benefit of an Action