Asked by Akash Arora on Jul 29, 2024
Verified
When diminishing marginal utility starts happening as a person consumes more and more of a given good,
A) total utility diminishes.
B) total utility increases at a diminishing rate.
C) marginal utility becomes negative.
D) total utility becomes negative.
Diminishing Rate
A principle stating that as one factor of production increases, while others stay constant, the resulting increase in output will eventually decrease.
Total Utility
The entire pleasure derived from using a certain total volume of a good or service.
- Absorb the theory of diminishing marginal utility and its significance in consumption activities.
Verified Answer
ZK
Zybrea KnightAug 03, 2024
Final Answer :
B
Explanation :
Diminishing marginal utility means that as a person consumes more of a good, the additional satisfaction (marginal utility) they get from each additional unit decreases, but their total satisfaction (total utility) still increases, just at a slower rate.
Learning Objectives
- Absorb the theory of diminishing marginal utility and its significance in consumption activities.
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