📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    Question

    The law of diminishing marginal utility states that as

    a consumer consumes more of a good:  
    A The total utility increases indefinitely Correct Answer Incorrect Answer
    B The marginal utility increases Correct Answer Incorrect Answer
    C The marginal utility decreases Correct Answer Incorrect Answer
    D The price of the good rises Correct Answer Incorrect Answer
    E The consumer’s income decreases Correct Answer Incorrect Answer

    Solution

    • Marginal utility is the additional satisfaction gained from consuming one more unit of a good. 
    • According to the law of diminishing marginal utility , as consumption increases , the additional satisfaction from each extra unit declines . 

    Practice Next
    ask-question