As a consumer consumes more and more of a product in a particular time period, eventually marginal utility
A)rises.
B)is constant.
C)declines.
D)fluctuates.

Question

Quizplus · Accepted Answer

Marginal utility refers to the additional satisfaction a consumer derives from consuming one more unit of a product. As a consumer consumes more and more of a product in a particular time period, eventually, the marginal utility of each additional unit consumed starts to decline. This is because the consumer may have already derived significant satisfaction from earlier units, and the law of diminishing marginal utility takes effect. Therefore, choice C is the correct answer.

As a Consumer Consumes More and More of a Product