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Agriculture Economics QUESTION #11883
Question 1
The Law of Diminishing Marginal Utility states that as a consumer acquires more units of a good:
  • Total utility eventually declines
  • The additional satisfaction from each extra unit, $MU$, eventually decreases✔️
  • Marginal utility remains constant
  • Total utility becomes negative immediately
Correct Answer Explanation
Marginal utility ($MU$) falls with each successive unit consumed, even while total utility may still be rising.