According to Marshall, The law of diminishing marginal utility
A)applies on money in the manner in which it applies on commodity
B)do not applies on money except bank money
C)does not applies on bank money but applies on cash
D)applies on all commodities except money

Question

Quizplus · Accepted Answer

Marshall's law of diminishing marginal utility states that as a person consumes more units of a good, the additional satisfaction from consuming an extra unit of the good decreases. Marshall believed this law applies to all commodities except money, as money is a medium of exchange and its utility is in what it can be exchanged for, rather than in the consumption of the money itself.

According to Marshall, the Law of Diminishing Marginal Utility