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Consumer Optimum Consumption: Marginal Utility per Dollar Spent
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Consumer Optimum Consumption: Marginal Utility per Dollar Spent
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18. Consumer Choice and Behavioral Economics / Consumer Optimum Consumption: Marginal Utility per Dollar Spent / Problem 1
Problem 1
What does the concept of diminishing marginal utility imply?
A
The price of a good decreases as more is consumed.
B
The total utility from consuming a good remains constant regardless of quantity.
C
As more of a good is consumed, the additional satisfaction from consuming an extra unit increases.
D
As more of a good is consumed, the additional satisfaction from consuming an extra unit decreases.
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