The law of diminishing marginal utility indicates that the slope of the marginal utility curve eventually becomes:
A) negative.
B) vertical.
C) horizontal.
D) positive.

Question

Quizplus · Accepted Answer

The law of diminishing marginal utility states that as a person consumes more of a good, the additional satisfaction (marginal utility) gained from consuming one more unit of that good decreases. This implies that the marginal utility curve will eventually slope downwards, becoming negative, as each additional unit of the good provides less additional utility than the previous one.

The Law of Diminishing Marginal Utility Indicates That the Slope