As more of a public good is produced, the marginal benefit of each additional unit ________ and as more of a private good is produced, the marginal benefit of each additional unit ________.
A) decreases; increases
B) increases; increases
C) increases; decreases
D) decreases; decreases
E) does not change; does not change

Question

Quizplus · Accepted Answer

For public goods, as more of the good is produced, the marginal benefit of each additional unit typically decreases because the needs of the public that highly value the good are already met. For private goods, the marginal benefit also decreases as more of the good is produced, reflecting the diminishing additional satisfaction or utility a consumer gets from consuming an additional unit of the good.

As More of a Public Good Is Produced, the Marginal