The general pattern that consumption of the first few units of any good tends to bring a higher level of to a person than consumption of later units is a common pattern. A. utility B. marginal benefit C. opportunity cost D. sunk costs
The correct answer and explanation is:
Correct Answer: B. Marginal Benefit
Explanation:
The concept described in the question refers to the Law of Diminishing Marginal Benefit, a foundational idea in economics. According to this law, the marginal benefit — or the additional satisfaction or utility a person receives from consuming one more unit of a good or service — tends to decrease with each additional unit consumed.
Let’s break it down:
Marginal Benefit Defined:
Marginal benefit is the extra benefit gained from consuming one more unit of a product or service. The first few units of a good often bring the greatest satisfaction because they satisfy the most urgent needs. As a person consumes more, the urgency or desire declines, and so does the benefit they get from consuming more of it.
Example:
Imagine you’re very thirsty:
- The first glass of water gives you a huge benefit — it quenches your thirst.
- The second glass still helps, but not as much.
- By the third or fourth, you might not even want it — the benefit is very low or even negative.
Why Not the Other Options?
- A. Utility: Utility is the overall satisfaction from consumption, but the question asks specifically about the pattern of each additional unit, which is marginal benefit.
- C. Opportunity Cost: This is the value of the next best alternative foregone, not directly related to the benefit of consuming each additional unit.
- D. Sunk Costs: These are past costs that cannot be recovered and are irrelevant to future decision-making about additional consumption.
Conclusion:
The correct concept is marginal benefit — the benefit decreases with each additional unit consumed, making option B the most accurate choice.