Economics JAMB

Diminishing marginal utility implies that?

A. total utility decreases as consumption increases
B. marginal utility increases as consumption increases
C. marginal utility decreases as consumption increase
D. marginal utility decreases as consumption decreases

Correct Answer:

Option C – marginal utility decreases as consumption increase

Explanation

Diminishing marginal utility explains that as a person consumes an item or a product, the satisfaction or utility that they derive from the product reduces as they consume more and more of that product. This means that the satisfaction that is meant to be derived from consuming an additional unit of a commodity reduces as you consume more of that commodity.

Sunday

Share
Published by
Sunday
Tags: economics

Recent Posts

List of Universities Offering Veterinary Medicine in Nigeria

Veterinary medicine is the branch of medicine that deals with the prevention, diagnosis, and treatment…

3 months ago

List of Universities Offering Anthropology in Nigeria

Anthropology is the scientific study of human beings and their cultures. It encompasses a wide…

3 months ago

List of Universities Offering Sociology in Nigeria

Sociology is the scientific study of human society, culture, and behavior. It examines the social…

3 months ago

List of Universities Offering Social Work in Nigeria

Social Work is a profession dedicated to helping individuals, families, and communities to cope with…

3 months ago

List of Universities Offering Religious Studies in Nigeria

Religious studies is an academic discipline that explores the beliefs, practices, and history of various…

3 months ago

List of Universities Offering Public Administration in Nigeria

Public administration is the field of study and practice that focuses on the organization and…

3 months ago