"Diminishing marginal benefit" implies that when Sally consumes one fewer unit of a good that she likes, her Group of answer choices marginal benefit increases. total benefit increases. income decreases. marginal benefit decreases.
Question
"Diminishing marginal benefit" implies that when Sally consumes one fewer unit of a good that she likes, her Group of answer choices
marginal benefit increases.
total benefit increases.
income decreases.
marginal benefit decreases.
Solution 1
The concept of "diminishing marginal benefit" implies that as a person consumes more of a good, the additional satisfaction they get from consuming an additional unit of that good decreases. Therefore, if Sally consumes one fewer unit of a good that she likes, her marginal benefit increases.
So, the correct answer is: marginal benefit increases.
Solution 2
The correct answer is "marginal benefit increases."
The law of diminishing marginal benefit (or utility) states that as a person increases consumption of a product while keeping consumption of other products constant, there is a decline in the marginal utility that person derives from consuming each additional unit of that product.
So, if Sally consumes one fewer unit of a good, it means she is moving in the opposite direction on the consumption scale. Therefore, the marginal benefit (or utility) she gets from consuming the next unit would increase.
Similar Questions
"Diminishing marginal benefit" implies that when Sally consumes one fewer unit of a good that she likes, her
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