In the utility functions in Figure 16.1, curve b exhibits:
A) diminishing marginal utility.
B) economies of scale.
C) risk seeking.
D) satiation.
E) unrealistic behavior.

Name: In the utility functions in Figure 16.1, curve b exhibits: A) diminishing marginal utility. B) economies of scale. C) risk seeking. D) satiation. E) unrealistic behavior.
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Question

Quizplus · Accepted Answer

Curve b exhibits diminishing marginal utility, as each additional unit of the good consumed yields less additional satisfaction than the previous unit.

In the Utility Functions in Figure 16