Which of the following statements is true about marginal benefit?

The correct answer identifies the concept of diminishing marginal utility, which states that as a consumer consumes additional units of a good or service, the additional satisfaction or benefit gained from each successive unit typically decreases. This principle reflects the observation that after a certain point, each additional unit consumed does not provide the same level of benefit or satisfaction as previous units.

For example, think of eating slices of pizza: the first slice may provide significant satisfaction, the second slice may still be enjoyable, but by the time you reach the third or fourth slice, the additional satisfaction gained from each subsequent slice tends to diminish. This decrease in marginal benefit is an essential concept in microeconomics as it influences consumer behavior and choices, often leading to a point where consumers no longer wish to consume additional units. The understanding of this phenomenon helps explain various aspects of demand and market dynamics.

The other options propose different notions about marginal benefit that do not align with widely accepted economic principles. It does not typically increase with consumption (as suggested in one option), remain constant (as another option indicates), or always equal the market price, as marginal benefit can fluctuate based on individual preferences and circumstances.