Asked by Alvin Sebastian on Jun 06, 2024
Verified
Which statement BEST describes the principle of diminishing marginal utility? As an individual consumes more of a good:
A) the total utility obtained will eventually fall.
B) the total utility obtained will eventually become negative.
C) the addition to total utility obtained from the nth unit of the good will be less than that obtained from the immediately preceding unit of the good.
D) the marginal utility will eventually become negative.
Diminishing Marginal Utility
The principle that as a person consumes more of a product, there is a decline in the additional satisfaction or utility that person derives from consuming one more unit of the product.
Total Utility
The total satisfaction received by a consumer from consuming a particular quantity of goods or services.
Nth Unit
A term referring to the last or latest unit produced or consumed, often used in economics to analyze marginal costs or benefits.
- Learn about the principle of diminishing marginal utility and its implications on consumption.
Verified Answer
Learning Objectives
- Learn about the principle of diminishing marginal utility and its implications on consumption.
Related questions
The Principle of Diminishing Marginal Utility Means That,when Sarah Eats ...
Freddy Has Eaten Three Corn Dogs at the County Fair,and ...
The Law of Diminishing Marginal Utility Indicates That the Slope ...
As You Consume More Turkey Relative to Mashed Potatoes,the _____ ...
Assuming That Diminishing Marginal Utility Applies to Both Pomegranates and ...