Question

The concept of diminishing marginal benefits means that? __________.

a. each additional unit consumed is worth less to you than the previous one.
b. the more of a good that you? consume, the lower is your overall benefit from that good.
c. as you consume more of a? good, your willingness to pay for that good increases faster than the benefit you receive.
d. each additional unit consumed is worth more to you than the previous? one, but the additional benefit grows at a diminishing rate.

Answer 1

The concept of diminishing marginal benefit is when you experience a relatively low benefit the more you consume a product. For example, when you eat a bar of chocolate, you find it sweet and enticing. You buy another one again but notice that the appetite gets boring. In the end, you stop to buying only two bars of chocolate. The answer is A.