Question

The law of ____________________________ explains why people and societies rarely make all-or-nothing choices.

Answer 1

The correct answer is the law of marginal utility.

Answer 2

Carl Menger

The law of diminishing marginal utility, as developed by Carl Menger (1840–1921), is axiomatic in nature; that is, it is irrefutably true. The Law Of Diminishing Marginal Utility states that all else equal as consumption increases the marginal utility derived from each additional unit declines. Marginal utility is derived as the change in utility as an additional unit is consumed. Utility is an economic term used to represent satisfaction or happiness.