Assuming that the marginal utility of wealth diminishes implies that
A) you have more total utility with $100 than with $1,000.
B) you have more total utility with $1,000 than with $1,001.
C) an additional dollar increases your total utility more if you only have $100 than if you have $1,000.
D) an additional dollar does not increase your total utility regardless of your wealth.

Question

Quizplus · Accepted Answer

The principle of diminishing marginal utility states that as a person acquires more of a good or wealth, the additional satisfaction (utility) gained from an additional unit decreases. Thus, an additional dollar provides more utility when you have less wealth ($100) compared to when you have more wealth ($1,000).

Assuming That the Marginal Utility of Wealth Diminishes Implies That