What does the law of diminishing marginal utility state?
A)That the amount of additional utility increases as successive units of a product are consumed.
B)That the amount of total utility decreases at an increasing rate.
C)That the amount of total utility decreases at a decreasing rate.
D)That the amount of additional utility decreases as successive units of a product are consumed.

Question

Quizplus · Accepted Answer

The law of diminishing marginal utility states that as successive units of a product are consumed, the amount of additional utility (satisfaction or usefulness) that a consumer derives from each additional unit decreases. In other words, the first unit of a product typically provides the most utility, and each additional unit provides less and less marginal utility.

What Does the Law of Diminishing Marginal Utility State