The Law of Diminishing Marginal Utility

Multiple Choice

The law of diminishing marginal utility:

A) is the tendency of total utility to increase until an individual's budget is no longer constrained.
B) refers to the tendency of marginal utility to decline beyond some level of consumption during a period.
C) indicates that, if a good is inferior, less of it will be purchased when income falls during a period.
D) assumes all goods are normal.