Question

The law of diminishing marginal utility indicates that if a consumer increases his consumption of a commodity continously

A total utility must fall
B marginal utility must fall
C marginal utility may rise
D marginal utility may fall even though his total utility may be rising

Answer 1

The correct answer is B. marginal utility must fall

The Law of Diminishing Marginal Utility states that as a consumer increases consumption of a specific product, the satisfaction, or utility, derived from each additional unit of that product decreases.

In other words, the more we consume a product, the less value we assign to each additional unit.

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