Ask Question
BusinessBusiness
16 April, 17:58

The law of diminishing marginal utility

1. refers to the decrease in total satisfaction as more units of the good are consumed

2. refers to the fall in additional satisfaction created by consumption of more and more units of a good

3. refers to the idea that total utility is negative

+1
Answers (1)
  1. 16 April, 18:49
    0
    The correct answer is option 2.

    Explanation:

    The law of diminishing marginal utility states that keeping other things constant, as more and more units of a commodity are consumed, it will lead to a decrease in the marginal utility derived from the consumption of each additional unit.

    In other words, if a consumer goes on consuming more and more of a commodity, the additional satisfaction derived from the consumption of each unit will decrease.

    The total utility will be maximized when the marginal utility from the consumption becomes zero.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The law of diminishing marginal utility 1. refers to the decrease in total satisfaction as more units of the good are consumed 2. refers to ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
In the long run, an increase in the saving rate in a steady-state economy will cause A. a decrease in the capital/labor ratio and an increase in consumption per worker B.
Answers (1)
The federal reserve is comprised of how many nationwide districts?
Answers (1)
Writ (T) for True and (F) for False Statements: 1. All desires of human beings are known as 'Demand'. 2. Demand is inversely related with income of the consumer. 3. Supply is the quantity which actually brought by the seller to sell in the market. 4.
Answers (1)
In order to craft effective business messages, beginning writers should follow the writing process closely. The first step in this process is analyzing the purpose of the message and audience.
Answers (1)
Lack of and poor layout or are some of the barriers to good communication.
Answers (1)
New Questions in Business
When preparing the budgeted income statement of a merchandising company, the amount of cost of goods sold can be taken from the
Answers (1)
Ortega Company manufactures computer hard drives. The market for hard drives is very competitive. The current market price for a computer hard drive is $42. Ortega would like a profit of $12 per drive.
Answers (1)
True or false Each consumer has a credit score in their credit report and the score adjusts up or down each month, based on positive or negative information reported by creditors
Answers (1)
Which type of unemployment is caused by a lack of demand for workers as a result of a shrinking economy?
Answers (1)
Actionable performance measures should be meaningful to a company's management and should provide the basis for decisions at the strategic level in an organization. A. True B. False
Answers (1)
Home » Business » The law of diminishing marginal utility 1. refers to the decrease in total satisfaction as more units of the good are consumed 2. refers to the fall in additional satisfaction created by consumption of more and more units of a good 3.
Sign Up Forgot Password?