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WAEC Economics 2012 Question 15

Question 15

Theory of Consumer Behaviour

The law of diminishing marginal utility applies to a

  1. A.firm which minimizes cost.
  2. B.consumer who maximizes satisfaction.
  3. C.producer who maximizes marginal product.
  4. D.consumer who minimizes total utility.
Show the answer and explanation

Answer: B (consumer who maximizes satisfaction.)

Explanation

The law concerns a consumer's satisfaction from successive units of a good.