The Principle of Decreasing Marginal Benefit Implies That the

question 115

Multiple Choice

The principle of decreasing marginal benefit implies that the

• A)additional benefit from obtaining one more unit of a good or service decreases as more of that good or service is consumed.
• B)additional benefit from obtaining one more unit of a good or service increases as more of that good or service is consumed.
• C)total benefit from obtaining more of a good or service decreases as more is consumed.
• D)total benefit from obtaining more of a good or service remains the same as more is consumed.
• E)additional benefit from producing one more unit of a good or service decreases as more of that good or service is produced.

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Definitions:

Seasonal Businesses

Companies that experience significant fluctuations in business activity due to seasonal factors such as holidays, weather, and consumer habits.

Customer Receivables

Money owed to a business by its customers for products or services delivered on credit.

Net Working Capital

The difference between a company's current assets and current liabilities.

Short-Term Payables

Liabilities owed by a company that are due within one year, often including accounts payable, wages, and taxes.