The law of diminishing marginal utility explains why a. most individual demand curves are straight lines. b. the consumer's optimal purchase is at the tangency of an indifference curve and the budget line. c. most individual demand curves slope downward. d. marginal utility falls when total utility falls.
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Step 1: The law of diminishing marginal utility states that as a consumer consumes more of a good or service, the additional satisfaction or utility derived from each additional unit decreases. Show more…
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