Diminishing marginal utility implies that the:

CA Foundation · Business Economics · RTP · January 2026
Diminishing marginal utility implies that the:
(A) A. marginal utility of a good diminishes over time.
(B) B. total utility is negative.
(C) C. last unit of a good consumed will contribute most to the consumer's satisfaction.
(D) D. first unit of a good consumed will contribute most to the consumer's satisfaction.

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. first unit of a good consumed will contribute most to the consumer's satisfaction.

Topics: Theory of Demand and Supply

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