-Sam's total utility for bananas is in the table above. Sam's total utility shows that the law of diminishing marginal utility
A) holds because Sam's total utility from bananas increases as Sam eats more bananas.
B) holds because his marginal utility from bananas decreases as Sam eats more bananas.
C) does not hold because Sam's total utility does not reach its maximum.
D) does not hold because Sam's marginal utility does not decrease to zero.
E) None of the above answers is correct because there are no data for marginal utility with which to answer the question.

Question

-Sam's total utility for bananas is in the table above. Sam's total utility shows that the law of diminishing marginal utility
A) holds because Sam's total utility from bananas increases as Sam eats more bananas. 
B) holds because his marginal utility from bananas decreases as Sam eats more bananas. 
C) does not hold because Sam's total utility does not reach its maximum. 
D) does not hold because Sam's marginal utility does not decrease to zero. 
E) None of the above answers is correct because there are no data for marginal utility with which to answer the question.

Quizplus · Accepted Answer

The law of diminishing marginal utility states that as a person consumes more of a good, the additional (marginal) utility from each additional unit of the good decreases. Choice B correctly reflects this principle by indicating that Sam's marginal utility from bananas decreases as he eats more bananas, which is a direct application of the law of diminishing marginal utility.

-Sam's Total Utility for Bananas Is in the Table Above