Which of the following is likely to occur as the result of the law of diminishing marginal utility? A) Petra's utility from her second apple was less than her satisfaction from her first orange. B) Hudson enjoyed his second slice of pizza more than his first. C) Sabine's utility from her first granola bar is greater than Rachel's utility from her second granola bar. D) Wesley enjoyed his second bottle of iced tea less than his first bottle, other things constant.

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15 January, 21:46

Which of the following is likely to occur as the result of the law of diminishing marginal utility? A) Petra's utility from her second apple was less than her satisfaction from her first orange. B) Hudson enjoyed his second slice of pizza more than his first. C) Sabine's utility from her first granola bar is greater than Rachel's utility from her second granola bar. D) Wesley enjoyed his second bottle of iced tea less than his first bottle, other things constant.

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Houston Walsh · Answer 1

The correct answer is option D.

Explanation:

The law of diminishing marginal utility says that keeping other things constant, marginal utility derived from the consumption of a good will keep on declining with each additional unit consumed by the consumer.

The diminishing marginal utility is not applicable for comparison between two consumers or two goods. It is applied to consumption of a single good by an individual consumer.

The utility or satisfaction derived from a good is supposed to decline not increase with increase in quantity.

So, option D is the correct answer.