alleryStart learning →The law of diminishing marginal utility holds that additional utility does what with each unit added?
AStays fixed
BDisappears
CDecreases
DIncreases
Answer & Solution
Correct answer: C. Decreases
1. Each extra unit of a good tends to add less than the one before.
2. Marginal utility is the additional utility from one additional unit.
3. The law of diminishing marginal utility describes how that changes.
4. It holds that the additional utility decreases with each unit added.
_Source: OpenStax Principles of Microeconomics for AP Courses 2e (CC BY 4.0), Ch 6 'Consumer Choices'_
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