According to the law of diminishing utility ?
Correct answer: D. Total utility will rise at a falling rate as more units are consumed
- A. Utility is at a maximum with the first unit
- B. Increasing units of consumption increase the marginal utility
- C. Marginal product will fall as more units are consumed
- D. Total utility will rise at a falling rate as more units are consumed
Explanation
With diminishing marginal utility, each additional unit adds less utility than the previous one, so total utility continues to rise at a falling rate while marginal utility remains positive. Marginal product concerns production, not consumption utility.
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