📚 Learning Guide
Marginal Benefit Calculation
easy

What happens to the marginal benefit when a consumer decides to purchase an additional unit of a good, assuming the price remains constant?

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Learning Path

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Choose 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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