What is marginal utility and what is the law of diminishing ...

[penguins]

What is marginal utility and what is the law of diminishing marginal utility?
 
  What will be an ideal response?

Question 2

Both monopolistically competitive firms and perfectly competitive firms maximize profits
 
  A) by producing where price equals average total cost.
  B) by producing where price equals average variable cost.
  C) by producing where marginal revenue equals marginal cost.
  D) by producing where marginal revenue equals average revenue.

[sarajane1989]

Answer to Question 1

Marginal utility is the change in total satisfaction a person receives from consuming one additional unit of a good or service. The law of diminishing marginal utility is the principle that consumers experience diminishing additional satisfaction as they consume more of a good or service during a given period of time.

Answer to Question 2

C