Answer:
The correct answer is option 2.
Explanation:
The law of diminishing marginal utility states that keeping other things constant, as more and more units of a commodity are consumed, it will lead to a decrease in the marginal utility derived from the consumption of each additional unit.
In other words, if a consumer goes on consuming more and more of a commodity, the additional satisfaction derived from the consumption of each unit will decrease.
The total utility will be maximized when the marginal utility from the consumption becomes zero.
