The Principle of Decreasing Marginal Benefit Implies That the

question 115

Multiple Choice

The principle of decreasing marginal benefit implies that the

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

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Definitions:

Labor and Overhead

The combined costs of direct labor and indirect expenses incurred during production.

Assembly Department

is a section in manufacturing where components are assembled into final products.

First-In, First-Out Method

An inventory valuation method that assumes goods are sold in the order they are acquired, with the oldest inventory items sold first.

Materials

Raw substances or components used in the manufacturing or production process.