According to the Law of Diminishing Marginal Utility, the second unit of a good consumed always adds less to total satisfaction than was added by the first unit consumed.

Question

Quizplus · Accepted Answer

The Law of Diminishing Marginal Utility states that as a person consumes more units of a good, the additional satisfaction (marginal utility) gained from consuming each additional unit tends to decrease. It does not specify that the second unit always adds less satisfaction than the first; the decrease can occur after any number of units, depending on the individual and the good in question.

According to the Law of Diminishing Marginal Utility, the Second