Question

MSB declines with every additional unit of money spent by the government due to
(a) Diminishing marginal returns
(b) Diminishing marginal utility
(c) Diminishing marginal productivity
(d) All of the above​

Answer 1

Explanation:

Among the various options given in question statement the correct option is the third one.

The law of diminishing marginal productivity states that during production of any thing, there comes a point where producing more units tends to decrease the production efficiency. This is the limit of producing something using a fixed resources. Hence when this stage is reached, the government does not intend more money

Answer 2

diminishing marginal unility