By assuming diminishing marginal utility, we mean that:
A) consumers get less overall value from goods as their income rises.
B) consumers value some goods more than others.
C) the cost of producing goods declines as output increases.
D) consumers value additional units of a good less and less.

Question

Quizplus · Accepted Answer

Diminishing marginal utility means that as a consumer consumes more of a good, the additional satisfaction they receive from each additional unit decreases. This leads to a decrease in the value or utility a consumer places on each subsequent unit of a good consumed.

By Assuming Diminishing Marginal Utility, We Mean That