Item5Item 5Marginal utility is:Multiple Choicediminishing.constant.increasing.unpredictable.

Understanding Marginal Utility

The term "marginal utility" refers to the additional satisfaction or benefit (utility) gained from consuming one more unit of a good or service. When considering the options provided in your multiple-choice question, we can analyze each:

1. Diminishing: This concept suggests that as you consume more units of a good or service, the additional satisfaction gained from each subsequent unit tends to decrease. This is the most widely accepted principle in economics regarding marginal utility.

2. Constant: This would imply that the satisfaction gained from each additional unit remains the same, which is generally not the case in real-world scenarios as preferences and consumption levels change.

3. Increasing: This option suggests that as more units are consumed, the satisfaction increases, which contradicts the principle of diminishing marginal utility.

4. Unpredictable: While consumer preferences can be unpredictable, the concept of marginal utility is typically analyzed under certain assumptions which do not lead to unpredictability.

Final Answer

The correct answer is diminishing.