By assuming diminishing marginal utility, we mean that:
A) consumers get less overall value from goods as their income rises.
B) consumers value some goods more than others.
C) the cost of producing goods declines as output increases.
D) consumers value additional units of a good less than the previous unit.

Question

Quizplus · Accepted Answer

Diminishing marginal utility suggests that as consumers consume additional units of a good, they derive less satisfaction or value from each subsequent unit. This means that consumers value additional units of a good less than the previous unit, which is option D.

By Assuming Diminishing Marginal Utility, We Mean That