The marginal utility received from each additional unit of a good consumed declines, other things constant. This is a statement of the law of
a. increasing marginal returns
b. marginal rate of substitution
c. supply
d. diminishing marginal utility
e. demand
Question 2
The law of diminishing marginal utility states that
a. total utility falls as more of a good is consumed, other things constant
b. total utility falls as marginal utility falls, other things constant
c. marginal utility falls as total utility increases, other things constant
d. marginal utility falls as more of a good is consumed, other things constant
e. marginal utility falls as less of a good is consumed, other things constant
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