Refer to the figure below. The law of diminishing marginal utility: $$\begin{array} { | c | c | c | }
\hline \text { Units } & \begin{array} { c }
\text { Marginal Utility } \
\text { of Good A }
\end{array} & \begin{array} { c }
\text { Marginal Utility } \
\text { of Good B }
\end{array} \
\hline 1 & 30 & 40 \
\hline 2 & 27 & 33 \
\hline 3 & 15 & 24 \
\hline 4 & 8 & 14 \
\hline
\end{array}$$
A) applies to Good A but not Good B.
B) does not apply to either Good A or Good B.
C) applies to Good B but not Good A.
D) applies to both Good A and Good B.

Question

Refer to the figure below. The law of diminishing marginal utility: $$\begin{array} { | c | c | c | } 
\hline \text { Units } & \begin{array} { c } 
\text { Marginal Utility } \
\text { of Good A }
\end{array} & \begin{array} { c } 
\text { Marginal Utility } \
\text { of Good B }
\end{array} \
\hline 1 & 30 & 40 \
\hline 2 & 27 & 33 \
\hline 3 & 15 & 24 \
\hline 4 & 8 & 14 \
\hline
\end{array}$$ 
A) applies to Good A but not Good B.
B) does not apply to either Good A or Good B.
C) applies to Good B but not Good A.
D) applies to both Good A and Good B.

Quizplus · Accepted Answer

The pattern of decreasing marginal utility with each additional unit consumed is evident for both Goods A and B, indicating that the law of diminishing marginal utility applies to both goods.

Refer to the Figure Below A) Applies to Good a but Not Good B