The principle of diminishing marginal utility implies that total utility falls as consumption rises above a certain level.

Name: The principle of diminishing marginal utility implies that total utility falls as consumption rises above a certain level.
Brand: Quizplus
Rating: 4.9 (25 reviews)

Question

Quizplus · Accepted Answer

The principle of diminishing marginal utility states that as a person consumes more of a good, the additional satisfaction (marginal utility) from each additional unit decreases, but total utility can still increase, just at a decreasing rate.

The Principle of Diminishing Marginal Utility Implies That Total Utility