JAMB Economics 2016 Objective — Question 8

Question 8 of 40 from the Joint Admissions and Matriculation Board (JAMB) Economics 2016 Objective paper, with the correct answer and a full explanation.

From the table above, it can be inferred that there is

• A. diminishing returns to scale
• B. excess demand
• C. diminishing marginal productivity
• D. diminishing marginal utilityCorrect

Explanation

Diminishing marginal utility is shown in the table: as more units are consumed, each additional unit adds less satisfaction (clear from units 4 & 5).

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