Statement I: As we consume more and more of a product,our marginal utility declines.
Statement II: A person's marginal utility can never be negative.
A)Statement I is true and statement II is false.
B)Statement II is true and statement I is false.
C)Both statements are true.
D)Both statements are false.

Question

Quizplus · Accepted Answer

Statement I is true because of the law of diminishing marginal utility, which states that as we consume more of a good, the satisfaction or utility we derive from each additional unit consumed decreases. Statement II is false because a person's marginal utility can be negative in certain situations, such as when consuming a product that has negative effects on their well-being or health.

Statement I: as We Consume More and More of a Product,our