The Additional Pleasure or Satisfaction from a Good Declines as More

question 98

Multiple Choice

The additional pleasure or satisfaction from a good declines as more of it is consumed in a given period.This is the definition of the

• A)Law of demand.
• B)Law of diminishing marginal utility.
• C)Law of diminishing total utility.
• D)Total revenue rule.

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Definitions:

Marginal Product

The additional output produced when one additional unit of a resource is employed.

Minimizing Costs

Minimizing costs involves finding the most efficient way to operate that lowers expenses without sacrificing the quality or quantity of output.

Rental Rate

The price paid for the temporary use of a good, service, or property, typically expressed as a fee per time period.

Cost Minimization

The process of reducing expenses to the lowest possible level while still achieving the desired level of output or quality.