Which of the following is a direct consequence of the principle of diminishing marginal utility?
The total utility derived from consuming a good will decrease with every additional unit consumed.
The price a consumer is willing to pay for each additional unit of a good decreases as consumption rises.
Firms will always face increasing marginal costs of production in the short run.
A consumer's total utility is maximised when marginal utility is at its highest point.
45 exam-style questions on AQA A Level Economics 1.2 Individual economic decision making (A-level only), covering 1.2.1 Consumer behaviour, 1.2.2 Imperfect information, 1.2.3 Aspects of behavioural economic theory, and 1.2.4 Behavioural economics and economic policy. Each one has a worked solution and a mark scheme showing where the marks go.