Question

    The concept of diminishing marginal utility implies

    that:
    A Total utility decreases with more consumption Correct Answer Incorrect Answer
    B Consumers will eventually get negative utility from a good Correct Answer Incorrect Answer
    C Each additional unit of a good provides less additional satisfaction Correct Answer Incorrect Answer
    D The price of a good must decrease over time Correct Answer Incorrect Answer

    Solution

    Diminishing marginal utility means that as a person consumes more of a good, the additional satisfaction (marginal utility) from each extra unit declines.

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