The concept of diminishing marginal utility:
A) explains why individuals rarely maximize their total utility.
B) is the change in total utility that comes from consuming one additional unit of a good or service.
C) is the principle that the additional utility gained from consuming successive units of a good or service tends to be smaller than the utility gained from the previous unit.
D) is the principle that the additional utility gained from consuming different bundles of goods and services tend to be smaller than the utility gained from consuming just one bundle of goods and services.

Question

Quizplus · Accepted Answer

Diminishing marginal utility refers to the fact that the additional satisfaction or utility obtained from consuming successive units of a good or service tends to be smaller than the satisfaction gained from the previous unit. This is because as consumers consume more of a good or service, they eventually reach a point where the additional unit provides less and less additional value or satisfaction.

The Concept of Diminishing Marginal Utility