Asked by Jessica Pierre on Jun 11, 2024
Verified
We assume the marginal benefit of consumption ________ as we consume fewer units of a good.
A) remains constant
B) increases
C) decreases
D) could either increase or decrease
Marginal Benefit
The enhancement in satisfaction or utility achieved by consuming an additional unit of a product or service.
Consumption
The use of goods and services by households, referring to the final purchase of products for direct use or ownership.
- Gain an understanding of externalities and their effects on community welfare.
- Distinguish between personal, societal, and incremental costs and advantages.
Verified Answer
JB
Jaime BermudezJun 15, 2024
Final Answer :
B
Explanation :
The marginal benefit of consumption typically increases as we consume fewer units of a good, reflecting the principle of diminishing marginal utility, which suggests that as we consume less of something, the satisfaction (utility) from each additional (marginal) unit increases.
Learning Objectives
- Gain an understanding of externalities and their effects on community welfare.
- Distinguish between personal, societal, and incremental costs and advantages.