Marginal utility of a good eventually decreases as the level of consumption increases.

Question

Quizplus · Accepted Answer

This is the law of diminishing marginal utility, which states that as a consumer consumes more units of a good, the additional satisfaction or utility derived from each additional unit decreases. Eventually, the consumer may reach a point where the marginal utility of the good becomes negative, indicating that further consumption actually decreases satisfaction.

Marginal Utility of a Good Eventually Decreases as the Level