Question

As additional slices of pizza are consumed, the additional satisfaction gained from each slice less than that of the previous slice, ceteris paribus. This is an example of_____________.

Answer 1

Answer:

The correct answer is letter "E": diminishing marginal utility.

Explanation:

The Law of Diminishing Marginal Utility states that the more you use a good or service, the less pleased you will be with each use or use that follows. The law of diminishing utility is a key principle in assessing consumer preferences. This assumes consumers are rational and spend money in such a way as to maximize their contentment with each subsequent unit without impacting their overall enjoyment negatively.