Exhibit 6-4

-In Exhibit 6-4, where does marginal utility first begin to diminish?
A) sometime after the first unit consumed
B) sometime after the second unit consumed
C) sometime after the third unit consumed
D) sometime after the fourth unit consumed
E) sometime after the fifth unit consumed

Question

Exhibit 6-4
 
-In Exhibit 6-4, where does marginal utility first begin to diminish?
A) sometime after the first unit consumed 
B) sometime after the second unit consumed 
C) sometime after the third unit consumed 
D) sometime after the fourth unit consumed 
E) sometime after the fifth unit consumed

Quizplus · Accepted Answer

Marginal utility begins to diminish sometime after the second unit consumed. After the second unit, the additional utility begins to decrease with each additional unit consumed, indicating diminishing marginal utility.

Exhibit 6-4 -In Exhibit 6-4, Where Does Marginal Utility First Begin to Utility