Question

According to the law of diminishing marginal utility, as the amount of a good consumed increases, the marginal utility of that good tends to
A) improve B) diminish C) remain constant D) first diminish and then improve

Answer 1

Answer:

(B) Diminish

Explanation:

According to the law of diminishing marginal utility ,as the amount of a good consumed increases,the marginal utility of that good tends to be diminished.Law of diminishing marginal utility says that the marginal utility from each additional unit declines as consumption increases . The marginal utility can decline into negative utility as it become entirely unfavorable to consume another unit of any product.