The principle of diminishing marginal utility implies that the
A) marginal utility of a product is negative.
B) total utility from a product is also diminishing as more units are consumed.
C) rate of change of total utility is diminishing as more units are consumed.
D) rate of change of marginal utility is very low as more units are consumed.

Question

Quizplus · Accepted Answer

The principle of diminishing marginal utility states that as more units of a product are consumed, the additional satisfaction (marginal utility) gained from consuming each additional unit decreases, which means the rate of change of total utility is diminishing.

The Principle of Diminishing Marginal Utility Implies That the