Jeannie's marginal utility from her 4th book in a month is 50. Her marginal utility from her 5th book
A) is greater than 50.
B) equals 50.
C) is less than 50.
D) might be more than, less than, or equal to 50 but more information is needed.

Question

Quizplus · Accepted Answer

According to the law of diminishing marginal utility, as a person consumes more units of a good, the additional satisfaction (marginal utility) from each additional unit typically decreases. Therefore, the marginal utility from the 5th book is likely to be less than 50.

Jeannie's Marginal Utility from Her 4th Book in a Month