As a general rule, marginal utility will be less:
A) as less of the good is consumed.
B) as more of the good is consumed.
C) when average utility is at a maximum.
D) only when the good is inferior.
E) when satisfaction is less than cost.

Question

Quizplus · Accepted Answer

Marginal utility is the additional utility received from consuming an additional unit of a good. As more of the good is consumed, the marginal utility will typically decrease because the consumer is already getting satisfaction from the previous units consumed. This is known as the law of diminishing marginal utility. Therefore, option B is correct.

As a General Rule, Marginal Utility Will Be Less