Assertion (A): The law of diminishing marginal utility plays a critical role in pricing strategies for businesses.
Reason (R): As the marginal utility diminishes with each additional unit consumed, firms set prices to reflect the diminishing worth consumers place on these subsequent units
1
Both A and R are true, and R is the correct explanation of A.
2
Both A and R are true, but R is NOT the correct explanation of A.
3
A is true, but R is false.
4
A is false, but R is true.