Q. According to the law of diminishing marginal utility, as the amount of a good consumed increases, the marginal utility of that good tends to _______

Improve

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Diminish

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Remain constant

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First diminish and then improve

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Solution

The correct option is B Diminish
Explanation:

The Law of Diminishing Marginal Utility states that marginal utility from consuming each additional unit of a commodity declines as its consumption increases.

In the below diagram, as more and more units of apples are consumed the marginal utility is declining.

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