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The pattern where each extra unit of a good gives less additional satisfaction is the law of:
ARising marginal utility
BDiminishing marginal utility
CIncreasing total utility
DConstant average utility
Answer & Solution
Correct answer: B. Diminishing marginal utility
1. The first slice of pizza is worth more to a hungry person than the fifth.
2. Economists refer to this pattern as the law of diminishing marginal utility.
3. It means that as a person receives more of a good, the additional utility from each additional unit declines.
4. Total utility can still rise even while marginal utility falls.
_Source: OpenStax Principles of Microeconomics for AP(R) Courses 2e (CC BY 4.0), Ch 2 'Choice in a World of Scarcity', sections 2.1-2.3_
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