Which of the following BEST reflects the idea of declining marginal benefit?

The answer is C.

The concept of declining marginal benefits means that for every additional (marginal) unit you buy or consume, the benefit you receive decreases (declines).

The statement that reflects best the idea of declining marginal benefit is

C) Our family really needed our first car, and we got a second car because it was convenient, but we see no reason to buy a third car.

Explanation:

Let us take an example if a customer wants to buy a milkshake and it costs them $15. Suppose they like it so much also they need another one to eat because they feel hungry. So they go to buy another one.

So, they get 2 milkshake and feel good with filled tummy. Also they go for third milk shake without reason. So marginal benefit is maximum money a customer will pay for goods or a service more than the satisfaction they receive for it.

But this marginal benefit will decline as the customer purchases more goods, for example the more the customer acquires milkshakes until they satisfied. So as consumption increases marginal benefit declines.