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Question
The law of diminishing marginal utility states that as the stock of a commodity with the consumer _______, its marginal utility to the consumer ________.
The law of diminishing marginal utility states that as the stock of a commodity with the consumer _______, its marginal utility to the consumer ________.
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Solution
The correct option is B increases; decreases
The law of diminishing marginal utility states that as the consumption
increases the marginal utility derived from the each successive units
tends to decline. The consumer is less willing to sacrifice one good to
consume one more additional unit of another good at a higher level of
consumption.
The law of diminishing marginal utility states that as the consumption increases the marginal utility derived from the each successive units tends to decline. The consumer is less willing to sacrifice one good to consume one more additional unit of another good at a higher level of consumption.
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