Your marginal utility would be highest at which of the following wealth levels?

Question

Quizplus · Accepted Answer

Marginal utility refers to the additional satisfaction or utility that a person receives from consuming an additional unit of a good or service. According to the principle of diminishing marginal utility, as a person acquires more of a good, the increase in utility that comes with each additional unit of the good decreases. Therefore, at lower levels of wealth, such as $10,000, the marginal utility of acquiring additional wealth is higher compared to at higher levels of wealth, like $50,000, $100,000, or $500,000.

Your Marginal Utility Would Be Highest at Which of the Following