Answer: b) As consumption increases, the marginal utility decreases.

• • Explanation: The law of diminishing marginal utility is a fundamental economic principle that suggests that the additional satisfaction derived from consuming one more unit of a good or service tends to decrease as consumption increases.

Answer: d) All of the above

• • Explanation: Factors like variety, complementarity, and time can influence the rate at which marginal utility declines. For example, a consumer may be willing to pay a premium for variety or for complementary goods, even if the marginal utility of each individual unit decreases.

Answer: b) The law of diminishing marginal utility.

• • Explanation: As the marginal utility of a good decreases, consumers are generally less willing to pay a higher price for additional units, leading to a downward-sloping demand curve.

Answer: b) The additional satisfaction derived from consuming one more unit of a good or service.

• • Explanation: Marginal utility refers to the incremental satisfaction or benefit a consumer receives from consuming one more unit of a good or service.

Answer: c) Marginal utility is always decreasing.

• • Explanation: While the law of diminishing marginal utility generally suggests that marginal utility decreases, there may be exceptions, such as when a consumer discovers a new use for a good or service.