As Matt's consumption of root beer increases, his
A) marginal utility from root beer increases.
B) marginal utility from root beer decreases.
C) total utility from root beer decreases.
D) both total and marginal utility from root beer increase.

Question

Quizplus · Accepted Answer

According to the law of diminishing marginal utility, as a consumer consumes more and more of a good, the additional satisfaction (marginal utility) from each additional unit of the good decreases. Therefore, as Matt consumes more root beer, his marginal utility from each additional bottle will decrease.

As Matt's Consumption of Root Beer Increases, His