Suppose the law of diminishing marginal utility holds for coffee. As a person drinks more coffee during the day, the total utility he or she receives will:
A) increase faster and faster.
B) fall steadily.
C) remain constant.
D) rise, but at slower and slower rates.

Question

Quizplus · Accepted Answer

The law of diminishing marginal utility states that as a person consumes more of a good, the additional satisfaction (marginal utility) gained from consuming an additional unit of that good decreases. Therefore, while the total utility from consuming coffee increases as more is consumed, it does so at a decreasing rate.

Suppose the Law of Diminishing Marginal Utility Holds for Coffee