The "law" of diminishing marginal utility implies that the
A)first unit of a good consumed will contribute most to the consumer's satisfaction.
B)last unit of a good consumed will contribute most to the consumer's satisfaction.
C)marginal utility of a good diminishes over time.
D)total utility is constant as more units are consumed.
E)total utility is negative.

Question

Quizplus · Accepted Answer

The "law" of diminishing marginal utility states that the additional satisfaction (or utility) gained from consuming each additional unit of a good decreases as more units are consumed. This means that the first unit consumed will contribute the most to the consumer's overall satisfaction, while each subsequent unit will contribute less and less. Therefore, choice A is the correct answer.

The "Law" of Diminishing Marginal Utility Implies That the