The law of diminishing marginal utility states that:
A)the additional utility from consuming an additional unit of a good declines as more of the good is consumed.
B)the additional utility from consuming an additional unit of a good eventually becomes positive as more of the good is consumed.
C)as less of one good and more of another good is consumed,the marginal utility of the first good eventually declines.
D)total utility eventually increases because marginal utility eventually increases as more of a good is consumed.

Question

Quizplus · Accepted Answer

The law of diminishing marginal utility explains that the additional satisfaction or usefulness that a consumer derives from consuming an additional unit of a good or service declines as more units are consumed. This is due to the fact that the needs and wants of a consumer are limited and eventually become satisfied or fulfilled. Therefore, the additional benefit obtained from consuming an additional unit of a good decreases as the quantity consumed increases.

The Law of Diminishing Marginal Utility States That