Asked by Lionell Martin Jr on Apr 26, 2024
Verified
The law of diminishing marginal utility indicates that the slope of the marginal utility curve is generally:
A) negative.
B) vertical.
C) horizontal.
D) positive.
Marginal Utility Curve
A graphical representation showing the relationship between the quantity of a good consumed and the marginal utility (satisfaction) derived from it.
Negative
Refers to a detrimental or adverse condition, effect, or impact.
- Study the principle of diminishing marginal utility and its relevance to consumer spending.
Verified Answer
KU
Kevin UlmerApr 28, 2024
Final Answer :
A
Explanation :
The law of diminishing marginal utility states that as a consumer consumes more units of a good or service, the additional satisfaction or utility derived from each additional unit consumed will eventually decrease. This implies that the slope of the marginal utility curve will be negative, as the marginal utility of each additional unit consumed is decreasing.
Learning Objectives
- Study the principle of diminishing marginal utility and its relevance to consumer spending.
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