The law of diminishing marginal utility is the principle that the marginal utility curve ____ as people consume more of a product in a given period.
A) rises.
B) falls.
C) remains unchanged.
D) first falls and then rises.

Question

Quizplus · Accepted Answer

According to the law of diminishing marginal utility, as people consume more of a product in a given period, the additional satisfaction, or marginal utility, that they derive from each additional unit of the product will eventually decrease. This means that the marginal utility curve will fall as consumption increases.

The Law of Diminishing Marginal Utility Is the Principle That