According to the law of diminishing marginal utility:
A)as the consumption of a particular good increases,marginal utility increases.
B)as the consumption of a particular good increases,marginal utility decreases.
C)refers to the idea that total utility is negative.
D)B and C are correct

Question

Quizplus · Accepted Answer

The law of diminishing marginal utility states that as the consumption of a particular good increases, marginal utility decreases. This means that each additional unit of the good provides less and less marginal utility, eventually reaching a point where marginal utility becomes negative. Option A is incorrect because it incorrectly states that marginal utility increases as consumption increases. Option C is also incorrect because total utility cannot be negative by definition (it represents the total satisfaction received from consuming a good). Option D is incorrect because only B is correct.

According to the Law of Diminishing Marginal Utility