Which statement BEST describes the principle of diminishing marginal utility? As an individual consumes more of a good:
A)the total utility obtained will eventually fall.
B)the total utility obtained will eventually become negative.
C)the addition to total utility obtained from the nth unit of the good will be less than that obtained from the immediately preceding unit of the good.
D)the marginal utility will eventually become negative.

Question

Quizplus · Accepted Answer

The principle of diminishing marginal utility states that as an individual consumes more of a good, the addition to total utility obtained from the nth unit of the good will be less than that obtained from the immediately preceding unit of the good. This means that the marginal utility (the additional utility from consuming one more unit of the good) will eventually decrease. However, this does not necessarily mean that the total utility obtained will fall or become negative.

Which Statement BEST Describes the Principle of Diminishing Marginal Utility