Which of the Following Is Explained by the Law of Diminishing

question 226

Multiple Choice

Which of the following is explained by the law of diminishing marginal utility?

• A)The marginal utility of Isabel's second bottle of Coca-Cola is greater than the marginal utility of her third bottle of Coca-Cola.
• B)The marginal utility of Isabel's second bottle of Coca-Cola is greater than the marginal utility of her third pretzel.
• C)The marginal utility of Isabel's second bottle of Coca-Cola is greater than the marginal utility of her friend Margie's third pretzel.
• D)The total utility of one bottle of Coca-Cola is greater than the total utility of two bottles of Coca-Cola.

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Definitions:

Marginal Social Benefit

The additional benefit that society gains from the production or consumption of one more unit of a good or service.

Marginal Social Cost

The total cost to society of producing one additional unit of a good or service, considering both private costs and externalities.

Coal Mine Pollution

Environmental damage caused by the extraction and processing of coal, including air and water pollution.

Coal Mine Pollution

Environmental contamination resulting from the extraction and processing of coal.