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    Question

    As per law of Diminishing marginal utility, the

    marginal utility from each additional unit declines as ________
    A Consumption increases Correct Answer Incorrect Answer
    B Consumption decreases Correct Answer Incorrect Answer
    C Production increases Correct Answer Incorrect Answer
    D Production decreases Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    The law of diminishing marginal utility says that  the marginal utility from each additional unit declines as consumption increases . The marginal utility can decline into negative utility, as it may become entirely unfavorable to consume another unit of any product.

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