'As the stock of a commodity increases with the consumer, its marginal utility to the consumer decreases'. To which of the following laws does the given…
'As the stock of a commodity increases with the consumer, its marginal utility to the consumer decreases'. To which of the following laws does the given statement refer to?
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Correct answer: (A) Law of Diminishing Marginal Utility
Explanation
The Law of Diminishing Marginal Utility says each extra unit of a commodity gives the consumer less additional satisfaction.