Refer to the figure below. The law of diminishing marginal utility: $$\begin{array} { | c | c | c | }
\hline \text { Units } & \begin{array} { c }
\text { Utils Per Year } \
\text { from T-shirts }
\end{array} & \begin{array} { c }
\text { Utils Per Year } \
\text { from Sweaters }
\end{array} \
\hline 0 & 0 & 0 \
\hline 1 & 75 & 400 \
\hline 2 & 135 & 720 \
\hline 3 & 180 & 960 \
\hline 4 & 210 & 1120 \
\hline
\end{array}$$
A)applies to t-shirts but not sweaters.
B)does not apply to either t-shirts or sweaters.
C)applies to sweaters but not t-shirts.
D)applies to both t-shirts and sweaters.

Question

Refer to the figure below. The law of diminishing marginal utility: $$\begin{array} { | c | c | c | } 
\hline \text { Units } & \begin{array} { c } 
\text { Utils Per Year } \
\text { from T-shirts }
\end{array} & \begin{array} { c } 
\text { Utils Per Year } \
\text { from Sweaters }
\end{array} \
\hline 0 & 0 & 0 \
\hline 1 & 75 & 400 \
\hline 2 & 135 & 720 \
\hline 3 & 180 & 960 \
\hline 4 & 210 & 1120 \
\hline
\end{array}$$
A)applies to t-shirts but not sweaters.
B)does not apply to either t-shirts or sweaters.
C)applies to sweaters but not t-shirts.
D)applies to both t-shirts and sweaters.

Quizplus · Accepted Answer

The law of diminishing marginal utility is evident in both the T-shirts and sweaters columns as more units are consumed. The utility gained from each additional unit consumed decreases as the total number of units consumed increases. Therefore, the correct choice is D - applies to both t-shirts and sweaters.

Refer to the Figure Below A)applies to T-Shirts but Not Sweaters