Multiple Choice
Which one of the following statements is TRUE?
A) The law of diminishing marginal utility does not apply to fashion items that are relatively new on the market.
B) The law of diminishing marginal utility does not apply to expensive items, such as cars, houses, and exotic vacations.
C) Consumers consider the expected marginal utility from a good in deciding whether to buy it.
D) Consumers will only buy goods which are not subject to diminishing marginal utility.
Correct Answer:

Verified
Correct Answer:
Verified
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