"I'm tired of eating muffins for breakfast. Today, I'm trying a bagel." These statements most clearly reflect the:
A) law of increasing returns to scale.
B) second law of demand.
C) law of diminishing marginal utility.
D) law of comparative advantage.

Question

Quizplus · Accepted Answer

The statement reflects the law of diminishing marginal utility, as the person has grown tired of muffins (reached a point of saturation) and is looking for a new breakfast option (seeking additional satisfaction). This law states that as a person consumes more and more of a good, the marginal utility (additional satisfaction) that they derive from each unit will eventually decrease.

"I'm Tired of Eating Muffins for Breakfast