The Principle of Decreasing Marginal Benefit Implies That the

question 148

Multiple Choice

The principle of decreasing marginal benefit implies that the

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

Sneaker Manufacturers

Companies engaged in the design, production, and marketing of sneakers for various consumer segments.

Price Competitive

A market condition where businesses strive to offer their goods or services at lower prices than their competitors to attract customers.

Few Substitutes

A market condition where there are limited alternatives for a product, giving the product a higher degree of market power and potentially leading to higher prices.

Long Run Equilibrium

A state where all inputs can be adjusted by firms and all prices can fully adapt, leading to resource allocation where supply equals demand.