Analyzing Diminishing Marginal Utility
An individual's preferences for consumption (c) and free time (t) are represented by the utility function U(c, t) = 40√c + 15t. First, find the mathematical expression for the marginal utility of consumption. Second, based on this expression, describe how the additional satisfaction from one more unit of consumption changes as the individual's total consumption increases. Finally, name the economic principle this relationship illustrates.
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