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Microeconomics

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Cheesecake

MICRO-LCJ4YN

Diminishing returns is a property seen for various functions in economics, including utility functions. When hungry, the first slice of cheesecake gives you a large amount of utility, but as you continue eating cheesecake, even if the mouth says “yes”, the stomach will start saying “no”.

Which of the following graphs best shows a utility function with diminishing marginal utility?

A
B
C
D