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

The correct answer is B. consumer who maximizes satisfaction

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)

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