The idea that each additional unit offers less additional satisfaction when additional units of product are consumed is known as
A) the law of decreasing total utility.
B) rationality.
C) marginal satisfaction.
D) diminishing marginal utility.

Question

Quizplus · Accepted Answer

Diminishing marginal utility is the economic principle stating that as a person increases consumption of a product, there is a decline in the marginal utility that person derives from consuming each additional unit of that product.

The Idea That Each Additional Unit Offers Less Additional Satisfaction