Which Situation Is Consistent with the Law of Diminishing Marginal

question 177

Multiple Choice

Which situation is consistent with the law of diminishing marginal utility?

• A)The more pizza Joe eats, the more he enjoys an additional slice.
• B)The more pizza Joe eats, the less he enjoys an additional slice.
• C)Joe's marginal utility from eating pizza becomes positive after eating three slices.
• D)Joe's marginal utility from eating pizza reaches a maximum when total utility is zero.

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Definitions:

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Square Feet

A unit of area measurement equal to a square measuring one foot on each side.

Step-down Method

An approach in accounting used to allocate indirect costs to relevant cost objects by sequentially distributing service departments' costs to production departments and other service departments.

Labor Hours

A measure of the amount of work output or effort, typically quantified in hours, provided by employees or workers.