John likes to eat apples,oranges,and pears.If John increases his consumption of oranges,ceteris paribus,marginal utility theory tell us that John's marginal utility from
A)oranges decreases.
B)apples decreases.
C)pears decreases.
D)oranges remains constant.
E)oranges,apples,and pears all decrease.

Question

Quizplus · Accepted Answer

According to the law of diminishing marginal utility, as John increases his consumption of oranges (assuming everything else remains constant), the marginal utility he derives from each additional orange will decrease. This means that the more oranges John consumes, the less satisfaction (or utility) he will get from each additional orange. This effect will not necessarily apply to the marginal utility John gets from apples or pears, although it is possible that he might experience diminishing marginal utility from those fruits as well if he consumes too many.

John Likes to Eat Apples,oranges,and Pears