Chapter 5: Problem 3
The marginal utility curve slopes downwards.
Short Answer
Expert verified
Answer: A downward-sloping marginal utility curve represents the relationship between consumption and utility, illustrating that as more units of a good or service are consumed, the additional satisfaction derived from each additional unit decreases. This graphical representation is directly related to the Law of Diminishing Marginal Utility, which states that as consumption increases, the marginal utility typically decreases.