The concept of diminishing marginal utility means that a graph representing marginal utility will be
A) downward-sloping.
B) upward-sloping.
C) impossible to generalize without a data set.
D) downward-facing concave.
E) upward-facing concave.

Question

Quizplus · Accepted Answer

The concept of diminishing marginal utility states that as a person consumes more of a good or service, the additional satisfaction or utility they receive from each additional unit consumed will eventually decrease. This means that the graph representing marginal utility will be downward-sloping, as the quantity consumed increases, the slope of the graph will flatten out until it reaches zero.

The Concept of Diminishing Marginal Utility Means That a Graph