Question on: SS2 Economics - The Law of Diminishing Marginal Utility
What does the law of diminishing marginal utility state?
As a consumer consumes more units of a good or service, the additional satisfaction or happiness they derive from consuming each additional unit increases.
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.
As a consumer consumes more units of a good or service, the additional satisfaction or happiness they derive from consuming each additional unit diminishes.
Add your answer
Please share this, thanks!
No responses