Question

Which of the following assumption is applicable for the law of diminishing marginal utility?

• A. The consumer is rational human being and he aims at minimization of satisfaction.
• B. The units of consumption are of reasonable size.
• C. All the units of the given commodity are heterogeneous.
• D. There is long time interval between the consumption of the goods.

Answer 1

The correct option is B The units of consumption are of reasonable size.

To uphold the law of marginal utility, the reasonable sized units are to be consumed. The law of marginal utility states that as consumption increases, the marginal utility derived from each successive units tends to decline.