_____ describes a situation where consumers already have one unit of an item and as a result place a lower value on an additional unit.
A) Decreasing marginal revenue
B) Leveling product usage
C) Monopolistic decline
D) Declining marginal utility
E) The law of diminishing markets

Question

Quizplus · Accepted Answer

This scenario is described by the law of diminishing marginal utility, which states that as a consumer consumes more units of a product, the additional satisfaction or utility they receive from each additional unit decreases. This results in the consumer placing a lower value on each additional unit, as they already have enough to satisfy their needs or wants.

_____ Describes a Situation Where Consumers Already Have One Unit