Question on: SS2 Economics - The Law of Diminishing Marginal Utility

What does the law of diminishing marginal utility state?

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A

As a consumer consumes more units of a good or service, the additional satisfaction or happiness they derive from consuming each additional unit increases.

B

As a consumer consumes more units of a good or service, the additional satisfaction or happiness they derive from consuming each additional unit remains constant.

C

As a consumer consumes more units of a good or service, the additional satisfaction or happiness they derive from consuming each additional unit diminishes.

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Correct Option: C

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