The point that each glass of lemonade consumed on a hot day brings lower and lower levels of satisfaction is known as the principle of
A) total benefits.
B) increasing marginal cost.
C) decreasing marginal benefit.
D) increasing opportunity cost.
E) decreasing marginal price.

Question

Quizplus · Accepted Answer

The principle of decreasing marginal benefit implies that as we consume more and more units of a good, the additional satisfaction or utility we derive from each additional unit starts to decrease. In this specific scenario, each additional glass of lemonade consumed on a hot day will bring lower and lower levels of satisfaction, which is an example of the principle of decreasing marginal benefit.

The Point That Each Glass of Lemonade Consumed on a Hot