The Principle of Decreasing Marginal Benefit Implies That the

question 121

Multiple Choice

The principle of decreasing marginal benefit implies that the

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

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Definitions:

Supplies

Items used in the operation of a business or manufacturing process, which are not directly associated with the products being made.

Net Operating Income

The financial metric that calculates a company's profitability from its normal business operations, deducting operating expenses from the revenue.

Planning Budget

A budget prepared for a future period, reflecting the goals and policies of management, and used as a tool for guiding business activities towards financial objectives.

Total Cost

The sum of all costs associated with the production or acquisition of goods or services, including direct and indirect costs.