The Assumption That the Marginal Utility of Wealth Diminishes Implies

question 21

Multiple Choice

The assumption that the marginal utility of wealth diminishes implies that

• A) total utility falls when wealth increases.
• B) the marginal utility of wealth is negative.
• C) total utility increases with wealth and each additional unit of wealth increases total utility by a smaller amount.
• D) total utility increases with wealth and each additional unit of wealth increases total utility by the same amount.