Which of the following best expresses the law of diminishing marginal utility?

• A. As a consumer acquires more of a good, the marginal utility from each extra unit increases.
• B. As a consumer acquires more of a good, the total utility from consumption always decreases.
• C. As a consumer acquires more of a good, the price of the good must decrease.
• D. As a consumer acquires more of a good, the additional satisfaction from each extra unit decreases.

Answer: (D)

Verified step by step guidance

1. Understand the concept of utility: Utility represents the satisfaction or happiness a consumer derives from consuming goods or services.
2. Define marginal utility: Marginal utility is the additional satisfaction a consumer gains from consuming one more unit of a good or service.
3. Recall the law of diminishing marginal utility: This law states that as a consumer consumes more units of a good, the marginal utility from each additional unit tends to decrease.
4. Analyze the options given: The correct expression should reflect that the extra satisfaction (marginal utility) decreases with each additional unit consumed, not increases or relates to price changes.
5. Conclude that the best expression of the law is: 'As a consumer acquires more of a good, the additional satisfaction from each extra unit decreases.'