Which of the following is consistent with the assumptions of marginal utility theory?
A) As Jose consumes more of one good, his marginal utility from consuming more of that good decreases.
B) As Jose consumes more of one good, his marginal utility from consuming more of that good increases.
C) As Jose consumes more of one good, his marginal utility from consuming more of all goods decreases.
D) As Jose consumes more of one good, his marginal utility from consuming more of all good increases.

Question

Quizplus · Accepted Answer

Marginal utility theory assumes that as a person consumes more of a good, the additional satisfaction (marginal utility) from consuming each additional unit decreases, known as the law of diminishing marginal utility.

Which of the Following Is Consistent with the Assumptions of Marginal