Multiple Choice
Which of the following statements is true because of the law of diminishing marginal utility?
A) When a customer continues to eat more pie at the Pie Palace, each additional piece of pie gives a larger amount of marginal utility.
B) When a customer continues to eat more pie at the Pie Palace, each additional piece of pie gives a smaller amount of marginal utility.
C) The marginal utility of a piece of pie is maximum when the total utility of pie is zero.
D) The total utility of pie is at a maximum while the marginal utility of pie is still increasing.
Correct Answer:

Verified
Correct Answer:
Verified
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