According to Marshall, The law of diminishing marginal utility
A)applies on money in the manner in which it applies on commodity
B)do not applies on money except bank money
C)does not applies on bank money but applies on cash
D)applies on all commodities except money

Question

Quizplus · Accepted Answer

The law of diminishing marginal utility states that as a person consumes more units of a good, the additional satisfaction from consuming an extra unit of the good decreases. Marshall argued that this law applies to all commodities except money, as money is a medium of exchange and its utility is in its spending power, which does not diminish in the same way as the utility of consumable goods.

According to Marshall, the Law of Diminishing Marginal Utility