For Michael, the first cup of coffee he drinks every morning is heavenly. The second one is pretty good, but not as good as the first, and if he drinks a third cup he feels jittery and sick. For Michael, the marginal utility from drinking a cup of coffee is clearly:
A)decreasing.
B)increasing.
C)positive.
D)negative.

Question

Quizplus · Accepted Answer

Since the second cup isn't as good as the first cup, and since the third cup isn't as good as the second cup, Michael's marginal utility from coffee must be decreasing.

For Michael, the First Cup of Coffee He Drinks Every