Howard has just smoked a cigarette. If he chooses to smoke a second one:
A)he will experience a drop in total utility.
B)he would not be acting rationally.
C)he will derive less marginal utility from it than his first.
D)None of these are true.

Question

Quizplus · Accepted Answer

The principle of diminishing marginal utility states that as a person consumes more of a good, the additional (marginal) utility from consuming an additional unit of that good decreases. Therefore, if Howard smokes a second cigarette immediately after the first, the satisfaction (utility) he gets from the second one will be less than what he got from the first.

Howard Has Just Smoked a Cigarette