For most families, the marginal utility of income is:
A) increasing.
B) constant.
C) diminishing.
D) unknown; the answer depends on the value of income.

Name: For most families, the marginal utility of income is: A) increasing. B) constant. C) diminishing. D) unknown; the answer depends on the value of income.
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Question

Quizplus · Accepted Answer

The marginal utility of income is generally diminishing because as income increases, the additional satisfaction or utility gained from an extra unit of income tends to decrease.

For Most Families, the Marginal Utility of Income Is