Which situation is consistent with the law of diminishing marginal utility? Multiple Choice The more ice cream Amy eats, the less she enjoys each additional cup of ice cream. The more ice cream Amy eats, the more she enjoys each additional cup of ice cream. Amy's marginal utility from eating ice cream becomes positive after eating four cups of ice cream. Amy's marginal utility from eating ice cream reaches a maximum when total utility is zero.
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Option A is consistent with this law, as it suggests that Amy enjoys each additional cup of ice cream less and less as she eats more. Option B is not consistent with the law, as it suggests that Amy enjoys each additional cup of ice cream more and more as she Show more…
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The law of diminishing marginal utility says that: a. as a person consumes more and more of a certain good, the addition to total satisfaction decreases. b. as a person's income increases, the satisfaction associated with each dollar spent decreases. c. as a person consumes more and more of a certain good, the additional satisfaction increases. d. as a person's income increases, the satisfaction associated with each additional dollar earned increases. Assume that this law holds for Quincy with ice cream and pretzels. Quincy decides to eat less ice cream and more pretzels. As a result: A. Quincy's marginal utility of ice cream decreases, and his marginal utility of pretzels increases. B. Quincy's marginal utility of both ice cream and pretzels decreases. C. Quincy's marginal utility of both ice cream and pretzels increases. D. Quincy's marginal utility of ice cream increases, and his marginal utility of pretzels decreases.
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States that marginal utility decreases as more of a good or service is consumed. Ans (B) Law of diminishing Marginal Utility
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