The correct answer is: B. The more a person consumes a product, the smaller becomes the additional utility, which he receives as a result of consuming an additional unit of the product.
The law of diminishing marginal utility states that as a person consumes more of a good, the additional satisfaction or utility gained from each additional unit of the good decreases. In other words, the first unit of a good will provide more satisfaction than the second unit, the second unit will provide more satisfaction than the third unit, and so on.
For example, let’s say you are very thirsty and you drink a glass of water. The first glass of water will provide you with a lot of satisfaction. You will feel very refreshed and your thirst will be quenched. However, if you drink a second glass of water, you will not get as much satisfaction from it. You will still feel refreshed, but your thirst will not be as quenched. And if you drink a third glass of water, you will get even less satisfaction from it.
This is because the more you consume of a good, the less satisfaction you get from each additional unit. This is because your needs for the good are being met. The first unit of a good satisfies your most urgent need, the second unit satisfies your next most urgent need, and so on. As you consume more and more of the good, your needs become less and less urgent, and you get less and less satisfaction from each additional unit.
The law of diminishing marginal utility is an important concept in economics. It helps to explain why people are willing to pay more for the first unit of a good than they are for the second unit, the second unit than they are for the third unit, and so on. It also helps to explain why people are willing to consume less of a good as the price of the good increases.