Diminishing marginal utility means that _____
A)as one consumes more of a good, other things constant, the total satisfaction obtained from consuming the good tends to fall.
B)as one hires more labor, other things constant, the total amount of output produced begins to fall.
C)as one hires more units of labor, other things constant, the marginal product of labor begins to fall.
D)as one consumes more of a good, other things constant, the additional satisfaction obtained from each additional unit of the good tends to fall.
E)as one consumes more of a good, other things constant, the extra satisfaction obtained from each extra good becomes negative.

Question

Quizplus · Accepted Answer

Diminishing marginal utility refers to the decrease in satisfaction or utility from consuming additional units of a good, where the total consumption is held constant. This means that as one consumes more of a good, the additional satisfaction gained from each additional unit consumed decreases. Therefore, the correct option is D, which states that as one consumes more of a good, other things constant, the additional satisfaction obtained from each additional unit of the good tends to fall.

Diminishing Marginal Utility Means That _____