If a consumer buys six units of a good, _____.
A)the first two units of the good will create more consumer surplus than the last two units
B)the last two units of the good will create more consumer surplus than the first two units
C)the second unit of the good will have greater marginal value than the first unit
D)the third unit of the good will have greater marginal value than the second unit
E)the sixth unit of the good will have greater marginal value than the fifth unit

Question

Quizplus · Accepted Answer

According to the law of diminishing marginal utility, as a consumer consumes more units of a good, the additional satisfaction (marginal utility) gained from consuming each additional unit decreases. Therefore, the first units consumed provide more consumer surplus than the later units, because the consumer values them more highly.

If a Consumer Buys Six Units of a Good, _____