Law of diminishing marginal utility states that when more and more units of a commodity are consumed, marginal utility ___________.

begins to increase

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remains constant

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begins to decrease

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becomes zero

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Solution

The correct option is C begins to decrease
Law of diminishing marginal utility states that as consumer will increase its consumption of a commodity, the marginal utility derived from every successive unit of consumption will decrease and a situation may come when marginal utility becomes zero or negative.

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