Question 6
POST_UTME_EKSU
•
2022
•
ECONOMICS
•
objective
The concept of opportunity \cost is closely related to the law of diminishing marginal utility. Explain how the law of diminishing marginal utility leads to opportunity \cost.
Answer Options
Correct Answer
A.
The law of diminishing marginal utility leads to opportunity \cost because as the quantity of a good consumed increases, the marginal utility derived from each additional unit decreases, making it necessary to sacrifice one good to obtain another.
B.
The law of diminishing marginal utility leads to opportunity \cost because as the quantity of a good consumed increases, the marginal utility derived from each additional unit increases, making it necessary to sacrifice one good to obtain another.
C.
The law of diminishing marginal utility has no relation to opportunity \cost.
D.
The law of diminishing marginal utility leads to opportunity \cost because as the quantity of a good consumed increases, the marginal utility derived from each additional unit remains cons\tant, making it necessary to sacrifice one good to obtain another.
Correct Answer
A
Correct Option:
The law of diminishing marginal utility leads to opportunity \cost because as the quantity of a good consumed increases, the marginal utility derived from each additional unit decreases, making it necessary to sacrifice one good to obtain another.
About This Question
This is
Post Utme Eksu
2022
Economics
Question 6.
It is one of the
objective
questions from the
2022
Post Utme Eksu
Economics
examination.