Question 34
POST_UTME_UI
•
2022
•
ECONOMICS
•
objective
The concept of opportunity \cost is closely related to the law of diminishing marginal utility. Explain how the law of diminishing marginal utility leads to opportunity \cost.
Answer Options
A.
The law of diminishing marginal utility leads to opportunity \cost because as more units of a good are consumed, the marginal utility of each additional unit decreases, leading to a decrease in total utility.
B.
The law of diminishing marginal utility leads to opportunity \cost because as more units of a good are consumed, the marginal utility of each additional unit increases, leading to an increase in total utility.
C.
The law of diminishing marginal utility leads to opportunity \cost 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
D.
The law of diminishing marginal utility leads to opportunity \cost because as more units of a good are consumed, the marginal utility of each additional unit decreases, leading to an increase in opportunity \cost.
Correct Answer
D
Correct Option:
The law of diminishing marginal utility leads to opportunity \cost because as more units of a good are consumed, the marginal utility of each additional unit decreases, leading to an increase in opportunity \cost.
About This Question
This is
Post Utme Ui
2022
Economics
Question 34.
It is one of the
objective
questions from the
2022
Post Utme Ui
Economics
examination.