Question

Which of the following describes a situation in which there would be decreasing marginal utility? A. Buying only necessities. B. Buying a car to substitute for riding the bus. C. Buying food in bulk to save money in the long run. D. Buying a second winter coat.

Answer 1

Answer:

I believe it is D.

Explanation:

Hope my answer has helped you and if not i'm sorry.

Answer 2

Answer:

D. Buying a second winter coat.

Explanation:

Marginal utility ascertain the added satisfaction a consumer gets from consuming additional amount of goods and services. It brings about change in utility as an additional unit is added.

positive marginal utility occurs when consumption of an item increases the total utility . Negative marginal utility occurs when the consumption of an item decrease the total utility.

Example of a deceasing marginal utility is consuming an item again and again .At a point the consumer urge for the item began to diminish. In this case of a buying a second winter coat their is diminishing marginal utility as a little benefit is gain from the second winter coat.