2018 · Q120
According to the law of diminishing marginal utility, as the amount of a good consumed increases, the marginal utility of that good tends to
General KnowledgeIndian Economy
- Aimprove
- Bdiminish
- Cremain constant
- Dfirst diminish and then imrpove
Explanation
The law of diminishing marginal utility states that as consumption of a good increases, the additional satisfaction from each extra unit declines. Marginal utility therefore tends to diminish, not improve or stay constant. Hence the answer is diminish.