As more bananas are consumed, other things constant, marginal utility tends to decrease at:
A) the same rate for all people.
B) the same rate for all goods for a given person.
C) the same rate for all people
D) different rates for different people and for other goods.
E) different rates for different people, but at the same rate as other goods.

Question

Quizplus · Accepted Answer

Marginal utility is subjective and varies from person to person and also depends on the quantity consumed. As more bananas are consumed, the marginal utility may decrease at a faster rate for some people compared to others. Additionally, the rate of decrease in marginal utility of bananas may differ from the rate of decrease in marginal utility of other goods for the same person. Therefore, option D is the best choice.

As More Bananas Are Consumed, Other Things Constant, Marginal Utility