Question 21
POST_UTME_NOUN
•
2025
•
COMMERCE
•
objective
In a perfectly competitive market, the law of diminishing marginal utility implies that the marginal utility of the last unit of a good consumed is always greater than the marginal utility of the first unit consumed. What is the correct statement regarding the law of diminishing marginal utility?
Answer Options
A.
The law of diminishing marginal utility states that the marginal utility of the last unit of a good consumed is always greater than the marginal utility of the first unit consumed.
Correct Answer
B.
The law of diminishing marginal utility states that the marginal utility of the last unit of a good consumed is always less than the marginal utility of the first unit consumed.
C.
The law of diminishing marginal utility states that the marginal utility of the last unit of a good consumed is always equal to the marginal utility of the first unit consumed.
D.
The law of diminishing marginal utility states that the marginal utility of the last unit of a good consumed is always greater than the marginal utility of the first unit consumed, but only in the short run.
Correct Answer
B
Correct Option:
The law of diminishing marginal utility states that the marginal utility of the last unit of a good consumed is always less than the marginal utility of the first unit consumed.
About This Question
This is
Post Utme Noun
2025
Commerce
Question 21.
It is one of the
objective
questions from the
2025
Post Utme Noun
Commerce
examination.