Asked by Jasmine Agosto on Jul 09, 2024
Verified
Which of the following best expresses the law of diminishing marginal utility?
A) The more of a product consumed, the smaller is the total utility from the product.
B) The less of a product consumed, the greater is the marginal utility of the product.
C) The more of a product consumed, the greater is the total utility from the product.
D) The less of a product consumed, the smaller is marginal utility of the product.
Marginal Utility
The extra value or satisfaction garnered by a consumer with the acquisition of one more unit of a good or service.
Total Utility
The overall satisfaction or happiness received from consuming a certain amount of goods or services.
- Acquire knowledge about the law of diminishing marginal utility and its consequences on consumer consumption.
Verified Answer
AP
Angie PerdiJul 16, 2024
Final Answer :
B
Explanation :
The law of diminishing marginal utility states that as a person consumes more of a product, the incremental (or marginal) utility from consuming an additional unit of that product decreases. Option B correctly captures this concept by indicating that the less of a product is consumed, the greater the marginal utility of consuming an additional unit of that product will be.
Learning Objectives
- Acquire knowledge about the law of diminishing marginal utility and its consequences on consumer consumption.
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