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The law of diminishing marginal utility applies to a

...

The law of diminishing marginal utility applies to a

A.

Firm which minimizes cost

B.

Consumer who maximizes satisfaction

C.

Producer who maximizes marginal product

D.

Consumer who minimizes total utility

Correct answer is B

The law of diminishing marginal utility states that the marginal utility of a good or service declines as its consumption increases. This means that, as a consumer keeps consuming additional units of a commodity, the additional satisfaction derived will keep decreasing (goods become less valuable as you continue consuming more of it)