Why does the marginal utility associated with the consumption of a product decline as we increase our consumption?
A) opportunity cost
B) presence of substitutes
C) satiation
D) presence of complements

Question

Quizplus · Accepted Answer

The principle of diminishing marginal utility explains that as a person consumes more of a product, the satisfaction (utility) gained from consuming each additional unit decreases. This is because each additional unit of consumption provides less added satisfaction than the previous one, leading to satiation.

Why Does the Marginal Utility Associated with the Consumption of a Product