The law of diminishing marginal utility indicates that if a consumer increases his consumption of...
ECONOMICSJAMB 2020
The law of diminishing marginal utility indicates that if a consumer increases his consumption of a commodity continously
- A. total utility must fall
- B. marginal utility must fall
- C. marginal utility may rise
- D. marginal utility may fall even though his total utility may be rising
Correct Answer: B. marginal utility must fall
Explanation
The law of diminishing marginal utility states that as a consumer consumes an item or a product, the satisfaction or utility that they derive from the product reduces as they consume more and more of that product.
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