Question

Started: Jan 29 at 10:09pm Quiz Instructions Read each question or statement carefully and be sure to read all responses before selecting your answer. Be s answer. Remember that this quiz is an individual effort and that you may not discuss the content of this quiz wit instructor. Quizzes will be available for review for three days after the deadline. D | Question 10 The principle of decreasing marginal benefit means that as the quantity of a good consumed ons O increases, its marginal benefit decreases O decreases, its marginal benefit decreases. O None of the possible choices is correct. O increases, its total benefit decreases Webi Record- sEval ng (free) 365 Next 4 Previous

Answer 1

The principle of decreasing marginal benefit states that as the quantity of good consumed increases the marginal benefit decreases (the first option). It is also known as the law of diminishing marginal utility. For example, you have one pizza you get additional utility but as you have more and pizzas, the additional benefit you get from consuming pizzas will decline.