According to the traditional theory of marginal utility as presented in the textbook,as more units of a good are acquired,the consumer's marginal utility
A) always continues to rise.
B) diminishes.
C) remains constant.
D) may diminish at first, but it must eventually rise.
E) may rise at first, but it must eventually become constant.

Question

Quizplus · Accepted Answer

According to the traditional theory of marginal utility, as more units of a good are acquired, the consumer's marginal utility diminishes. This is because as the consumer acquires more units of the good, the satisfaction they derive from each additional unit decreases. Eventually, the consumer may reach a point where the marginal utility becomes negative, meaning that the additional unit of the good actually reduces their overall satisfaction.

According to the Traditional Theory of Marginal Utility as Presented