Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
It decreases
B
It increases
C
It remains the same
D
It becomes negative
Understanding the Answer
Let's break down why this is correct
Answer
When a consumer decides to buy an additional unit of a good, the marginal benefit is the extra satisfaction or value they get from that extra unit. However, as they consume more, the satisfaction from each additional unit usually decreases; this is known as diminishing marginal benefit. For example, think about eating slices of pizza. The first slice gives you a lot of enjoyment, but by the fourth or fifth slice, you may not enjoy it as much because you are starting to feel full. Therefore, even if the price stays the same, the benefit from each additional slice decreases.
Detailed Explanation
The marginal benefit decreases when you buy more of something. Other options are incorrect because Some might think that buying more makes you happier each time; It's a common mistake to believe that each unit gives the same benefit.
Key Concepts
consumer choice
Topic
Marginal Benefit Calculation
Difficulty
easy level question
Cognitive Level
understand
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