What does the law of diminishing marginal utility state?
A) Eventually total utility falls as more of a good is consumed, other things constant.
B) The extra satisfaction from consuming a good, decreases as more of a good is consumed, other things constant.
C) The extra satisfaction from consuming a good, increases slowly as more of a good is consumed, other things constant.
D) When the extra satisfaction from consuming a good becomes negative, total utility starts falling, other things constant.
Correct Answer:
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Q4: As a consumer consumes more and more
Q6: If your total satisfaction increases when you
Q7: Marginal utility can be
A)negative.
B)zero.
C)positive.
D)positive, negative, or zero.
Q10: If a consumer receives 20 units of
Q13: Suppose your marginal utility from consuming the
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