The law of diminishing marginal utility states:
A) The additional benefit which a person derives from a given increase of his stock of a thing diminishes with every increase in stock that he has already
B) Total utility diminishes with the consumption of every additional unit
C) Utility always diminishes whether something is consumed or not
D) Utility first increases and after that diminishes at every point
Correct Answer :
Option (A) – The additional benefit which a person derives from a given increase of his stock of a thing diminishes with every increase in stock that he has already
The law of diminishing marginal utility states: