Which of the following is an example of diminishing marginal utility?
A)a person buying additional goods after getting a pay raise
B)a person eating more Twinkies but enjoying each successive Twinkie less than the previous one
C)a person giving some of his income to a needy person
D)a person who spends more hours studying than his fellow students
E)a person buying goods as long as her marginal utility is greater than zero

Question

Quizplus · Accepted Answer

Diminishing marginal utility refers to the concept that as a person consumes more and more of a good, the additional satisfaction or utility they receive from each additional unit of the good decreases. In this case, the person eating more Twinkies experiences less enjoyment from each successive Twinkie, indicating diminishing marginal utility.

Which of the Following Is an Example of Diminishing Marginal