Post Utme Lead City University 2022 Commerce Question 26

Practice objective / multiple choice question 26 from the 2022 Post Utme Lead City University Commerce examination.

Post Utme Lead City University 2022 Commerce Objective / Multiple Choice
Question 26 POST_UTME_LEAD_CITY_UNIVERSITY • 2022 • COMMERCE • objective

In a perfectly competitive market, the law of diminishing marginal utility states that as the quantity of a good consumed increases, the marginal utility derived from each additional unit consumed will eventually decrease. What is the primary reason for this decrease in marginal utility?

Answer Options

Correct Answer A. The law of diminishing marginal utility is a result of the satiation of consumer desires.
B. As the quantity of the good consumed increases, the consumer's income effect decreases.
C. The marginal utility of each additional unit consumed decreases due to the law of diminishing returns.
D. The marginal utility of each additional unit consumed decreases due to the law of supply and demand.
Correct Answer
A
Correct Option:
The law of diminishing marginal utility is a result of the satiation of consumer desires.

About This Question

This is Post Utme Lead City University 2022 Commerce Question 26. It is one of the objective questions from the 2022 Post Utme Lead City University Commerce examination.

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