The law of diminishing marginal utility states that as one consumes more and more of a good,other things constant,_____
A)total utility keeps on increasing.
B)marginal utility always stays positive.
C)marginal utility approaches but never becomes zero.
D)marginal utility keeps on increasing.
E)marginal utility eventually declines.

Question

Quizplus · Accepted Answer

The law of diminishing marginal utility states that as one consumes more and more of a good, other things constant, the additional satisfaction or benefit (marginal utility) from each additional unit consumed will eventually decline. This means that although total utility may still increase, the rate of increase will slow down as marginal utility approaches zero. Eventually, as more and more units are consumed, the marginal utility may even become negative, indicating that the consumer is experiencing disutility or dissatisfaction from consuming additional units of the good. Therefore, Option E is the correct answer.

The Law of Diminishing Marginal Utility States That as One