The theory of diminishing marginal utility states that as more units of a commodity are...
ECONOMICS
WAEC 2008
The theory of diminishing marginal utility states that as more units of a commodity are consumed, the
- A. satisfaction from an extra unit decreases
- B. satisfaction from an extra unit rises
- C. satisfaction from an extra units remains constant
- D. total satisfaction from the goods remains the same
Correct Answer: A. satisfaction from an extra unit decreases
Explanation
The law of diminishing marginal utility states that, as the consumption of a particular commodity increases, the marginal utility/satisfaction gotten from the consumption of an additional unit of the said commodity will fall/decrease.
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