According to the law of diminishing marginal utility, as the amount of a good consumed increases, the marginal utility of that good tends to
[amp_mcq option1=”improve” option2=”diminish” option3=”remain constant” option4=”first diminish and then improve” correct=”option2″]
This question was previously asked in
UPSC CDS-1 – 2018
The law of diminishing marginal utility states that as a consumer consumes more and more units of a specific good, the additional satisfaction (utility) derived from consuming each successive unit tends to decrease. While the total utility might increase initially, the rate at which it increases slows down.
Marginal utility diminishes as consumption of a good increases.