Which of the following concepts best describes why a consumer's willingness to pay for a good decreases as the quantity consumed increases?
A) diminishing marginal utility
B) increasing additional cost
C) constant marginal benefit
D) decreasing additional cost

Question

Quizplus · Accepted Answer

Diminishing marginal utility explains why a consumer's willingness to pay decreases as they consume more of a good, because the additional satisfaction (utility) gained from consuming an additional unit of the good decreases with each unit consumed.

Which of the Following Concepts Best Describes Why a Consumer's