The Principle of Decreasing Marginal Benefit Implies That the

question 118

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

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Definitions:

Amortization Method

A technique used to gradually write off the initial cost of an asset over a period, reflecting its consumption, wear and tear, or obsolescence.

Intangible Asset

An asset that lacks physical substance, such as intellectual property, brand recognition, and trademarks.

Uncertainty

A situation where the outcome, extent, or implications of an event or condition are unknown or unpredictable.

Discount Rate

The interest rate used to discount future cash flows of a financial instrument to obtain the present value.