Constant marginal utility means that marginal utility ______ as consumption ______.
A) remains constant; increases
B) remains constant; decreases
C) increases; increases
D) increases; decreases

Question

Quizplus · Accepted Answer

When marginal utility remains constant, it means that each additional unit consumed provides the same amount of satisfaction as the previous unit. This implies that consumption can increase without any decrease in marginal utility. Therefore, marginal utility remains constant as consumption increases.

Constant Marginal Utility Means That Marginal Utility ______ as Consumption