Question 27
EasyOriginal questionThe law of diminishing marginal utility says that
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
Each successive unit satisfies a want that is already partly met, so it adds less.
TU keeps rising while MU is positive; it is MU that diminishes.
Worth noting
Total utility falls only after MU turns negative, not as soon as MU falls.
- Concept
- Law of diminishing marginal utility
- Typical timeTypical
- 40 s
- Your timeYours
- —
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