Recall the Application about how marginal utility changes with the quantity consumed to answer the following question(s). Neuroscientists offered subjects in an experiment varying monetary rewards, and observed the neural activity in a subject's striatum region of the brain.
-Recall the Application.What was shown in the study that the neuroscientists conducted on subjects and their reaction to varying monetary rewards?
A) It showed that general rewards are subject to diminishing marginal utility.
B) It showed a direct demonstration of the law of diminishing marginal utility.
C) It showed a direct demonstration of the subject's opportunity cost.
D) Nothing was shown in the study.

Question

Quizplus · Accepted Answer

The study demonstrated that general rewards, like monetary ones, are subject to diminishing marginal utility, meaning the satisfaction or utility gained from each additional unit decreases as more is consumed.

Recall the Application About How Marginal Utility Changes with the Quantity