The Principle of Decreasing Marginal Benefit Implies That the

question 180

Multiple Choice

The principle of decreasing marginal benefit implies that the

• A) additional benefit from obtaining one more of a good or service decreases as more is consumed.
• B) additional benefit from obtaining one more of a good or service increases as more 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.

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Definitions:

Taxation

The imposition of financial charges or other levies upon a taxpayer by a governmental organization in order to fund various public expenditures.

Limited Liability

A legal principle that limits an investor's losses to the amount of their investment, protecting personal assets beyond the investment in the company.

Corporate Profits

The residual income of businesses after paying all expenses, including taxes and operating costs, often reported quarterly or annually.

Corporate Directors

Members of a company's board of directors, elected by shareholders, responsible for overseeing the management and making key decisions affecting the company's direction.