According to the law of diminishing marginal utility, which of the following is true?

Choose 1 answer:
(A) The total satisfaction from consuming more of a good always decreases as consumption increases
(B) When marginal utility decreases, total utility will also decrease
(C) The satisfaction of consuming additional units of a good will decrease as consumption of the good increases
(D) Consuming more of a good will always make a consumer worse off
(E) Total satisfaction from a good increases at an increasing rate as more of the good is consumed

Question

According to the law of diminishing marginal utility, which of the following is true?

Choose 1 answer:
(A) The total satisfaction from consuming more of a good always decreases as consumption increases
(B) When marginal utility decreases, total utility will also decrease
(C) The satisfaction of consuming additional units of a good will decrease as consumption of the good increases
(D) Consuming more of a good will always make a consumer worse off
(E) Total satisfaction from a good increases at an increasing rate as more of the good is consumed

Accepted Answer

∻Solution∻ ‖ a ⋮ Definition of the Law of Diminishing Marginal Utility: The law of diminishing marginal utility states that as a consumer consumes more units of a good, the additional satisfaction (marginal utility) gained from consuming each additional unit decreases. ‖‖ b ⋮ Correct Answer Identification: The correct answer is (C) "The satisfaction of consuming additional units of a good will decrease as consumption of the good increases." This is because it directly aligns with the definition of the law of diminishing marginal utility. ‖ ∻Answer∻ ⚹ (C) The satisfaction of consuming additional units of a good will decrease as consumption of the good increases ⚹ ∻Key Concept∻ ⚹ Law of Diminishing Marginal Utility ⚹ ∻Explanation∻ ⚹ The law of diminishing marginal utility explains that as a consumer consumes more of a good, the additional satisfaction from each additional unit decreases. This is why the correct answer is (C). ⚹◊What factors influence the rate at which marginal utility diminishes as consumption of a good increases⍭ Generate me a similar question◊

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