Post Utme Summit University 2021 Commerce Question 31

Practice objective / multiple choice question 31 from the 2021 Post Utme Summit University Commerce examination.

Post Utme Summit University 2021 Commerce Objective / Multiple Choice
Question 31 POST_UTME_SUMMIT_UNIVERSITY • 2021 • 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 or equal to the marginal utility of the first unit consumed.
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 Summit University 2021 Commerce Question 31. It is one of the objective questions from the 2021 Post Utme Summit University Commerce examination.

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