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The Principle of Diminishing Marginal Utility

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Essay

The principle of diminishing marginal utility:
A.refers to 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 as the amount of consumption of a good or service increases.
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.


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