If the first four units of a good consumed have marginal utilities of 10, 9, 8, and 7, respectively, this trend is an indication of the:
A) law of diminishing marginal utility.
B) minimization of utility.
C) law of consumer equilibrium.
D) law of diminishing consumer surplus.

Question

Quizplus · Accepted Answer

The trend of diminishing marginal utility is characterized by the decrease in the additional satisfaction or usefulness gained from consuming additional units of a good. As the marginal utility of each additional unit decreases, it indicates that the consumer is becoming less satisfied with each additional unit consumed, which is a reflection of the law of diminishing marginal utility.

If the First Four Units of a Good Consumed Have