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​As people use more and more of a product, they encounter increasing marginal utility.

Select one:
True
False

User SpaceX
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Answer:

True

Step-by-step explanation:

Utility is the satisfaction derived from consuming a product or service i.e the pleasure or happiness a consumer gets in using a product.

Marginal Utility on the other hand is the additional, extra satisfaction or benefits that an individual or consumers derives from buying an additional unit of a commodity or service. This simply states that when someone buys a particular product and consumes more of that product such person has undergo increasing marginal utility.

E.g Mr. A bought pasta yesterday and buy same today and day after , he's only buying cause of the satisfaction he derives in consuming pasta. And by so doing, he has encounter and increasing marginal utility.

User Luca Marzi
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