The law of diminishing marginal utility applies to a
A. firm which minimizes cost B. consumer who maximizes satisfaction C. producer who maximizes marginal product D. consumer who minimizes total utility
Correct Answer: B
Explanation
The law of diminishing marginal utility states that the marginal utility of a good or service declines as its consumption increases. This means that, as a consumer keeps consuming additional units of a commodity, the additional satisfaction derived will keep decreasing (goods become less valuable as you continue consuming more of it)
