Diminishing marginal utility means that as more of a good is consumed,
A) the consumption of some other good must diminish.
B) the price of the good rises.
C) the utility of an additional unit decreases.
D) more income is spent.
E) the price of the good falls.

Question

Quizplus · Accepted Answer

Diminishing marginal utility refers to the decrease in additional satisfaction or usefulness as more units of a product are consumed or acquired. This occurs because each additional unit of the product provides less utility than the previous unit consumed or acquired. Therefore, the utility of an additional unit decreases.

Diminishing Marginal Utility Means That as More of a Good