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Which of the Following Statements Is True Because of the Law

Question 99

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.

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