The law of diminishing marginal utility refers to

A) a consumer's decrease in total satisfaction as she consumes more units of a good.
B) a consumer's decrease in additional satisfaction as she consumes more and more units of a good.
C) the idea that total utility is negative.
D) the idea that marginal utility is negative.

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ABHISHEK TRIPATHI · Accepted Answer

Final Answer : B, Explanation :  The law of diminishing marginal utility states that as a consumer consumes more units of a good, the additional satisfaction (marginal utility) gained from consuming each additional unit decreases. This does not imply that total satisfaction decreases or that utility becomes negative, just that the incremental gain in satisfaction diminishes.

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