Question

As a person receives more of a good, the _______________ from each additional unit of the good declines.

a. utility
b. sunk costs
c. marginal utility
d. budget constraint

Answer 1

Answer:

Option (c) is correct.

Explanation:

Marginal utility refers to the additional utility that a consumer can get from consuming additional units.

Law of diminishing marginal utility states that as a consumer consumes more and more quantity of goods, then the additional utility drive from each extra unit of the goods goes on diminishing.

The consumption is assumed to be continuous.