Nathan drinks three cups of coffee per day.The marginal benefit that he enjoys from drinking the third cup is
A)less than the marginal benefit that he receives from drinking the second cup.
B)the same as the total benefit from drinking all three cups minus the total benefit of drinking the first two cups.
C)greater than the marginal benefit that he receives from drinking the second cup.
D)both A and B
E)none of the above

Question

Quizplus · Accepted Answer

The marginal benefit of the third cup is the additional benefit from consuming that cup, which is typically less than the benefit from the second cup due to diminishing marginal utility. It is also calculated as the total benefit of three cups minus the total benefit of two cups.

Nathan Drinks Three Cups of Coffee Per Day