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 their marginal utility is greater than zero

Question

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 their marginal utility is greater than zero

Quizplus · Accepted Answer

Diminishing marginal utility is the concept that, as you consume more of a certain good or service, the benefit you derive from each additional unit consumed decreases. This is exactly what happens in option B, where the person is eating more Twinkies but enjoying each successive Twinkie less than the previous one.

Which of the Following Is an Example of Diminishing Marginal