Diminishing marginal utility means that as more of a good is consumed,
A) the price of the good rises.
B) the price of the good falls.
C) more income is spent.
D) the utility of an additional unit decreases.
E) the consumption of some other good must diminish.

Question

Quizplus · Accepted Answer

Diminishing marginal utility means that the satisfaction or benefit derived from consuming additional units of a good or service decreases as more of it is consumed. This inversely implies that the usefulness of an additional unit of the good or service decreases. Hence, option D is the correct answer.

Diminishing Marginal Utility Means That as More of a Good