Graphically,as a consumer buys more of a good,the marginal utility line will
A)Increase as more goods are consumed.
B)Increase steadily and then decline.
C)Continuously decline if diminishing returns are present.
D)Follow the same shape as the total utility line.

Question

Quizplus · Accepted Answer

The marginal utility line will continuously decline if diminishing returns are present. This means that as the consumer buys more and more of a good, the additional satisfaction they receive from each additional unit consumed will decrease. This is because the consumer will eventually reach a point of satiation where consuming more of the good will provide little to no additional satisfaction. Therefore, the marginal utility curve will slope downward as more of the good is consumed.

Graphically,as a Consumer Buys More of a Good,the Marginal Utility