Question

Which one of the following is the basis of diminishing marginal utility?

• A. Law of Demand
• B. Laws of Returns
• C. Law of Supply
• D. None of these

Hint:

Diminishing marginal utility is a fundamental concept, not derived from other laws.

Answer 1

The Correct Option is D

Step 1:
The law of diminishing marginal utility states that as a person consumes more units of a good, the additional satisfaction from each unit decreases, assuming all else is constant.
Step 2:
This is a standalone economic principle, not directly based on the Law of Demand, Laws of Returns, or Law of Supply.
Step 3:
Therefore, the correct option is (D) None of these.