The Law of _____ Says That Most Activities Yield Less

question 55

Short Answer

The law of _____ says that most activities yield less value as the amount of consumption increases.

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Definitions:

Deadweight Loss

See efficiency loss.

Marginal Cost

The increase in expenditure incurred from making one more unit of a product or service.

Marginal Benefit

The extra benefit or utility received from the consumption or production of an additional unit of a product or service.

Public Goods

Goods or services that are available for consumption by everyone and where use by one individual does not reduce availability to others.