Question

If the first four units of a good consumed have marginal utilities of 8, 4, 2, and 1, respectively, this trend is an indication of the:________

Answer 1

Answer:

The law of diminishing marginal utility

Explanation:

The Law Of Diminishing Marginal Utility states that all else equal as consumption increases the marginal utility derived from each additional unit declines.

Marginal utility was the highest when only one unit was consumed. As consumption increased, marginal utility declined