The total utility to a person from owning nine cars is likely to be ______ the total utility from owning ten cars.

Question

Quizplus · Accepted Answer

This is due to the law of diminishing marginal utility, which states that as a person consumes more of a good, the additional satisfaction or utility from each unit consumed decreases. Therefore, the additional utility gained from adding a ninth car to an individual's collection will be greater than the utility gained from adding a tenth car, and there may even be a point where the marginal utility becomes negative (i.e. owning too many cars becomes a burden instead of a source of satisfaction).

The Total Utility to a Person from Owning Nine Cars