Which of the following is true , according to the law of diminishing marginal utility?
A) The marginal utility of Diane's second Coke is greater than the marginal utility of her third pretzel, other things constant.
B) The marginal utility of Diane's second Coke is greater than the marginal utility of Ken's third pretzel, other things constant.
C) The marginal utility of Diane's second Coke is greater than the marginal utility of her third Coke, other things constant.
D) The total utility of two Cokes is greater than the total utility of three Cokes, other things constant.

Question

Quizplus · Accepted Answer

The law of diminishing marginal utility states that as a consumer consumes more units of a good, the additional satisfaction they receive from each additional unit will eventually decrease. Therefore, the marginal utility of Diane's second Coke will be less than her first Coke, and the marginal utility of her third Coke will be even less. Option C states that the marginal utility of Diane's second Coke is greater than the marginal utility of her third Coke, which is consistent with the law of diminishing marginal utility. The other options do not accurately reflect the law.

Which of the Following Is True , According to the Law