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) total utility is always 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 consumed provides less satisfaction than the previous one. Choice A is incorrect because marginal utility decreases, not increases, as consumption increases. Choice C is incorrect because total utility can be positive, negative, or zero depending on the level of consumption. Choice D is partially correct but incomplete.

According to the Law of Diminishing Marginal Utility