-The above table shows Homer's utility from boxes of doughnuts. As Homer's consumption of doughnuts increases, his
A) marginal utility is negative and decreasing.
B) marginal utility is negative but increasing.
C) total utility is not related to his marginal utility.
D) marginal utility is positive but decreasing.
E) marginal utility is positive and increasing.

Question

-The above table shows Homer's utility from boxes of doughnuts. As Homer's consumption of doughnuts increases, his
A) marginal utility is negative and decreasing. 
B) marginal utility is negative but increasing. 
C) total utility is not related to his marginal utility. 
D) marginal utility is positive but decreasing. 
E) marginal utility is positive and increasing.

Quizplus · Accepted Answer

Marginal utility refers to the additional satisfaction or utility that a consumer gains from consuming one more unit of a good or service. As Homer consumes more doughnuts, his satisfaction from each additional doughnut decreases, which is a common phenomenon known as diminishing marginal utility. This means his marginal utility is positive (he still gains some satisfaction from each additional doughnut) but decreasing (each additional doughnut brings less satisfaction than the one before).

-The Above Table Shows Homer's Utility from Boxes of Doughnuts