Question

Marginal Utility must diminish as more and more standard units of a commodity are continuously consumed.

• A. True
• B. False

Answer 1

The correct option is A True

Marginal utility refers to additional utility which a consumer gets on consuming one extra unit of a commodity. So, as consumer consumes more and more of a commodity, the satisfaction at each level will diminish. This is in accordance with the law of diminishing marginal utility.