Post Utme Elizade University 2021 Commerce Question 26

Practice objective / multiple choice question 26 from the 2021 Post Utme Elizade University Commerce examination.

Post Utme Elizade University 2021 Commerce Objective / Multiple Choice
Question 26 POST_UTME_ELIZADE_UNIVERSITY • 2021 • COMMERCE • objective

In a perfectly competitive market, the law of diminishing marginal utility leads to a decrease in the marginal utility of the last unit consumed. This results in a decrease in the total utility of the last unit consumed. What is the correct interpretation of this phenomenon?

Answer Options

A. The law of diminishing marginal utility is a result of the law of supply and demand.
B. The law of diminishing marginal utility is a result of the law of diminishing returns.
C. The law of diminishing marginal utility is a result of the law of increasing costs.
Correct Answer D. The law of diminishing marginal utility is a result of the law of diminishing marginal utility itself.
Correct Answer
D
Correct Option:
The law of diminishing marginal utility is a result of the law of diminishing marginal utility itself.

About This Question

This is Post Utme Elizade University 2021 Commerce Question 26. It is one of the objective questions from the 2021 Post Utme Elizade University Commerce examination.

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