Use the following to answer question:
-(Table: Alaina's Utility from Consuming Cups of Coffee)Use Table: Alaina's Utility from Consuming Cups of Coffee.Diminishing marginal utility is:
A)not present in Alaina's consumption of coffee since her total utility keeps increasing.
B)present in Alaina's consumption of coffee since her total utility increases at a decreasing rate with each cup consumed.
C)equal to 0 utils.
D)not present since Alaina exhibits increasing marginal utility.

Question

Use the following to answer question: 
-(Table: Alaina's Utility from Consuming Cups of Coffee)Use Table: Alaina's Utility from Consuming Cups of Coffee.Diminishing marginal utility is:
A)not present in Alaina's consumption of coffee since her total utility keeps increasing. 
B)present in Alaina's consumption of coffee since her total utility increases at a decreasing rate with each cup consumed. 
C)equal to 0 utils. 
D)not present since Alaina exhibits increasing marginal utility.

Quizplus · Accepted Answer

Diminishing marginal utility is present in Alaina's consumption of coffee since her total utility increases at a decreasing rate with each cup consumed. This can be seen as the marginal utility of each additional cup of coffee consumed decreases as the quantity increases.

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