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Question

The Law of Diminishing Marginal Utility states that the more a consumer consumes a product, he derives _____ from additional consumption.

A
Equal Utility
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B
Higher Utility
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C
Lesser Utility
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D
Infinite Utility
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Solution

The correct option is C Lesser Utility
The Law Of Diminishing Marginal Utility states that all else equal as consumption increases the marginal utility derived from each additional unit declines. Marginal utility is derived as the change in utility as an additional unit is consumed. Utility is an economic term used to represent satisfaction or happiness. The Law of Diminishing Marginal Utility states that the more a consumer consumes a product, he derives lesser utility from additional consumption

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