Question 30
POST_UTME_UI
•
2022
•
ECONOMICS
•
objective
The concept of diminishing marginal utility is closely related to the law of increa\sing opportunity \cost. Explain how the law of increa\sing opportunity \cost leads to diminishing marginal utility.
Answer Options
Correct Answer
A.
The law of increa\sing opportunity \cost leads to diminishing marginal utility because as more units of a good are consumed, the opportunity \cost of producing each additional unit increases, leading to a decrease in marginal utility.
B.
The law of increa\sing opportunity \cost leads to diminishing marginal utility because as more units of a good are consumed, the marginal utility of each additional unit decreases, leading to a decrease in total utility.
C.
The law of increa\sing opportunity \cost leads to diminishing marginal utility because as more units of a good are consumed, the marginal utility of each additional unit increases, leading to an increase in total utility.
D.
The law of increa\sing opportunity \cost leads to diminishing marginal utility because as more units of a good are consumed, the marginal utility of each additional unit remains cons\tant, leading to a cons\tant total utility.
Correct Answer
A
Correct Option:
The law of increa\sing opportunity \cost leads to diminishing marginal utility because as more units of a good are consumed, the opportunity \cost of producing each additional unit increases, leading to a decrease in marginal utility.
About This Question
This is
Post Utme Ui
2022
Economics
Question 30.
It is one of the
objective
questions from the
2022
Post Utme Ui
Economics
examination.