Question

The tendency for a resource that has no price to be used until its marginal benefit falls to zero is referred to as?

1) Scarcity
2) Opportunity cost
3) Marginal utility
4) Diminishing returns

Answer 1

The tendency for a resource that has no price to be used until its marginal benefit falls to zero is referred to as marginal utility.

Step-by-step explanation:

The tendency for a resource that has no price to be used until its marginal benefit falls to zero is referred to as marginal utility. Marginal utility is the additional satisfaction or benefit that a person receives from consuming one more unit of a good or service. As more units of the resource are consumed, the marginal utility tends to decrease, eventually reaching zero.