WAEC Economics 2011 Objective — Question 12
Question 12 of 50 from the West African Examinations Council (WAEC) Economics 2011 Objective paper, with the correct answer and a full explanation.
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The law of diminishing marginal utility states that the more a commodity is consumed the
- A. A. higher the satisfaction derived from an additional unit
- B. B. higher the price
- C. C. lower the quantity supplied
- D. D. lower the rate of increase in the total utility derivedCorrect
Explanation
Law of diminishing marginal utility explains that total utility increases at a decreasing rate as more units are consumed. This means additional satisfaction from each additional unit falls.
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