Marginal utility (MU) curve is always ________.

rising

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falling

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parallel to x-axis

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parallel to y-axis

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Solution

The correct option is A falling

The negative slope of the marginal utility curve reflects the law of diminishing marginal utility. The marginal utility curve also can be used to derived the demand curve.
The marginal utility curve is negatively sloped. It decreases as the number of rides increases. Each additional ride adds less utility that the preceding one.

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