What is meant by the phrase diminishing marginal utility?
Choose 1 answer:
(A) Each additional unit of input used yields less additional output
(B) Total happiness increases at a constant rate
(c) Total happiness increases at an increasing rate
(D) Total happiness is always decreasing
(E) Each additional unit of consumption yields less additional happiness than the previous unit

Question

Accepted Answer

∻Solution∻ ‖ a ⋮ Definition of Diminishing Marginal Utility: Diminishing marginal utility refers to the principle that as a person consumes more units of a good, the additional satisfaction (utility) gained from consuming each additional unit decreases. ‖ ‖ b ⋮ Correct Answer Identification: The correct answer is (E) Each additional unit of consumption yields less additional happiness than the previous unit. This aligns with the definition of diminishing marginal utility. ‖ ∻Answer∻ ⚹ (E) Each additional unit of consumption yields less additional happiness than the previous unit ⚹ ∻Key Concept∻ ⚹ Diminishing Marginal Utility ⚹ ∻Explanation∻ ⚹ Diminishing marginal utility is the economic principle that as more units of a good are consumed, the additional satisfaction from consuming each additional unit decreases. This concept is crucial in understanding consumer behavior and decision-making. ⚹◊What is the relationship between diminishing marginal utility and the concept of consumer satisfaction in Microeconomics?⍭ Generate me a similar question◊

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