The law of diminishing marginal utility states that as you consume more and more of a good, other things constant,
A)total utility eventually rises
B)marginal utility can become positive
C)marginal utility approaches, but never becomes, zero
D)total utility can never become negative
E)marginal utility eventually declines

Question

Quizplus · Accepted Answer

The law of diminishing marginal utility states that as you consume more and more of a good, other things constant, the additional satisfaction (or marginal utility) you receive from consuming each additional unit will eventually start to decline. This is due to the fact that the more of a good you have, the less you may need or desire it, leading to a decreasing marginal utility. Therefore, choice E (marginal utility eventually declines) is the best answer.

The Law of Diminishing Marginal Utility States That as You