The concept of diminishing marginal benefits states that A. the more you pay for a good, the less benefit you receive. B. the more you consume of a good, your willingness to pay for an additional unit declines. C. the more you pay for a good, the greater the benefit you receive. D. the more you consume of a good, the less benefit you receive.

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Business

Diego Blair

25 July, 19:08

The concept of diminishing marginal benefits states that A. the more you pay for a good, the less benefit you receive. B. the more you consume of a good, your willingness to pay for an additional unit declines. C. the more you pay for a good, the greater the benefit you receive. D. the more you consume of a good, the less benefit you receive.

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Ishaan · Answer 1

Option D, the more you consume of a good, the less benefit you receive, is the correct answer.

Explanation:

The law of diminishing marginal benefits or law of diminishing marginal utility states and I quote" The marginal utility from an additional unit of consumption declines as the quantity of consumed goods increases"

Satisfaction from consumption is at peak at early stage of consumption.

Consider yourself as been thirsty, hence, the satisfaction you derive from first bottle of soft drink is high since that is when thirst is high, compared to a lower satisfaction from second bottle which was just taken for fun and not to quench thirst.