Question

According to law of Diminishing Marginal Utility, which of the following is true?
A. Total satisfaction decreases as more units of goods are consumed.
B. The additional satisfaction received from consuming extra units of a good decreases as consumption of the good increases.
C. The additional satisfaction received from consuming extra units of a good
decreases as consumption of the good increases.
D. The additional satisfaction received from consuming extra units of a good increases as consumption of the good increases
E. When marginal utility is decreasing. total utility is decreasing

Why is the answer correct?

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Answer 1

Answer:

Correct option is

B

as the consumption of a given product rises, the added benefit eventually diminishes

Law of diminishing marginal utility is based on psychological law that as more and more units of a commodity is consumed, marginal utility derived from every successive unit will decline in respect to all goods with a few exception.

Explanation:

Hope's it helps you

Answer 2

Answer:

The additional satisfaction received from consuming extra units of a good

decreases as consumption of the good increases

Explanation:

• Marginal utility is important.
• It is based on a psychological law .
• It states that as more as more as consumed goods decreases and marginal utility increases.
• On vice versa .As consumed goods increases then marginal utility decreases.