Practice Quiz

AP Microeconomics

Category - Microeconomics

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Mike and Rob frequently go to an all-you-can-eat sushi restaurant in New York. Every time they eat there, though, they find that each piece of sushi is less satisfying than the one before it. What economic principle does this scenario best illustrate?
  1. Law of diminishing comparative advantage
  2. Decreasing opportunity cost
  3. Law of diminishing marginal utility
  4. Law of increasing consumption
Explanation
Answer - C - This scenario best illustrates the law of diminishing marginal utility.

Key Takeaway: Utility is typically discussed within the context of the law of diminishing marginal utility. This law states that as a person gains more of one particular item, that person will have less satisfaction (or utility) from obtaining that one more unit.
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