-The table above gives Jane's total utility from magazines and CDs. The price of a magazine is $4 and the price of a CD is $10. Which of the following CORRECTLY illustrates the principle of diminishing marginal utility? The fact that
A) the sixth magazine has less marginal utility than the sixth CD.
B) Jane's marginal utility per dollar from the second magazine is the same as her marginal utility per dollar from the third CD.
C) the marginal utility per dollar from the sixth magazine is less than the total utility from six magazines.
D) the marginal utility of the third CD is less than the marginal utility of second CD.

Question

-The table above gives Jane's total utility from magazines and CDs. The price of a magazine is $4 and the price of a CD is $10. Which of the following CORRECTLY illustrates the principle of diminishing marginal utility? The fact that
A) the sixth magazine has less marginal utility than the sixth CD. 
B) Jane's marginal utility per dollar from the second magazine is the same as her marginal utility per dollar from the third CD. 
C) the marginal utility per dollar from the sixth magazine is less than the total utility from six magazines. 
D) the marginal utility of the third CD is less than the marginal utility of second CD.

Quizplus · Accepted Answer

The principle of diminishing marginal utility states that as a person consumes more of a good, the additional satisfaction (marginal utility) gained from consuming each additional unit decreases. Thus, the marginal utility of the third CD being less than the marginal utility of the second CD illustrates this principle.

-The Table Above Gives Jane's Total Utility from Magazines and CDs