Question

The law of diminishing utility states that added satisfaction declines as a consumer acquires additional units of a given product. True or false?.

Answer 1

The law of marginal utility states that added satisfaction declines as a consumer acquires additional units of a given product. The given statement is false.

What is marginal utility?

Marginal utility, in economics, exists as the additional satisfaction or benefit (utility) that a consumer emanates from buying an additional unit of a commodity or service. Utility stands for the satisfaction or benefits emanated by consuming a product. The marginal utility of a good or service represents how much pleasure or satisfaction exists gained or lost by consumers as a consequence of the increase or decrease in consumption by one unit. There are three classifications of marginal utility.

Diminishing marginal utility directs to the phenomenon that each additional unit of gain shows an ever-smaller increase in subjective value. For example, three bites of candy exist better than two bites, but the twentieth bite does not add much to the adventure beyond the nineteenth.

Hence, The given statement is false.

To learn more about marginal utility refer to:

brainly.com/question/15050855

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