Question

Which of the following is likely to occur as the result of the law of diminishing marginal​ utility? A. ​Petra's utility from her second apple was < her satisfaction from her first orange. B. ​Sabines' utility from her first granola bar is >​ Rachel's utility from her second granola bar. C. Wesley enjoyed his second bottle of iced tea < his first​ bottle, other things constant. D. Hudson enjoyed his second slice of pizza more than his first.

Answer 1

Answer:

The correct answer is option C.

Explanation:

The law of diminishing marginal utility means that keeping other things at constant the marginal utility derived from the consumption of a commodity goes on declining with each additional unit of the commodity.

So, the marginal utility from the first unit will be highest, that from second unit will be lesser, that from third even lower and so on.

In the examples given above, Wesly's case is most applicable to this.

So, option C is the correct answer.