Exhibit 5-2
-Refer to Exhibit 5-2. The marginal utility of the third unit is
A)smaller than the marginal utility of the second unit.
B)smaller than the marginal utility of the fourth unit.
C)smaller than the marginal utility of the fifth unit.
D)smaller than the marginal utility of the sixth unit.
E)impossible to calculate given the available information.

Question

Exhibit 5-2 
-Refer to Exhibit 5-2. The marginal utility of the third unit is
A)smaller than the marginal utility of the second unit. 
B)smaller than the marginal utility of the fourth unit. 
C)smaller than the marginal utility of the fifth unit. 
D)smaller than the marginal utility of the sixth unit. 
E)impossible to calculate given the available information.

Quizplus · Accepted Answer

Marginal utility typically decreases as more units of a product are consumed, reflecting the law of diminishing marginal utility. Therefore, the marginal utility of the third unit would be smaller than that of the second unit, as each additional unit consumed provides less satisfaction than the previous one.

Exhibit 5-2 -Refer to Exhibit 5-2. the Marginal Utility of the Third