Respuesta :
According to the law of decreasing marginal utility, an extra unit of consumption results in a smaller overall increase in utility as consumption goes up.
Which of the following claims on the law of declining marginal utility is accurate?
Response and Justification: The ideal solution is (d) With increased overall utility, marginal utility may decrease. The marginal utility decreases with each new unit, indicating declining marginal utility. On the other hand, as more units are added, the total utility of a product increases until the marginal utility is zero.
Which of the following accurately represents the law of diminishing marginal utility?
According to the law of diminishing marginal utility, consumption grows at the same time that the marginal utility from each new unit decreases.
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The statement that is true of the law of diminishing marginal utility is "d. The law of diminishing marginal utility states that as more units of a good are consumed, the marginal utility from the consumption of the next unit becomes lesser.
Why is the statement true of the law of diminishing marginal utility?
This statement is true because marginal utility is the additional satisfaction or benefit that a consumer gets from consuming one more unit of a good. As the consumer consumes more units of the same good, the satisfaction or benefit from each additional unit tends to decrease.
This is because the consumer's want or need for the good is gradually satisfied and the good becomes less scarce or valuable to the consumer. For example, if a person is hungry and eats a slice of pizza, the marginal utility from the first slice is high. But as the person eats more slices of pizza, the marginal utility from each additional slice is lower, because the person is less hungry and more full.
Eventually, the marginal utility from eating pizza may become negative, meaning that the person would prefer to stop eating pizza and switch to something else.
The law of diminishing marginal utility is important for understanding consumer behavior and demand. It implies that consumers will demand more of a good when its price is lower, because the marginal utility per dollar spent is higher. Conversely, consumers will demand less of a good when its price is higher, because the marginal utility per dollar spent is lower.
The law of diminishing marginal utility also explains why demand curves are downward sloping, meaning that as the price of a good decreases, the quantity demanded increases, and vice versa."
Therefore, the correct answer is as given above
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