The benefit of a one-unit increase in an activity
A) is called marginal cost.
B) is always greater than the opportunity cost of that activity.
C) decreases as you do more of it.
D) is measured by what you must give up.
E) is called rational-choice benefit.

Question

Quizplus · Accepted Answer

The benefit of a one-unit increase in an activity typically decreases as you do more of it, reflecting the principle of diminishing marginal utility. This principle states that as consumption increases, the marginal utility derived from each additional unit declines.

The Benefit of a One-Unit Increase in an Activity