When diminishing marginal utility starts happening as a person consumes more and more of a given good,
A) total utility will diminish.
B) total utility will increase at a diminishing rate.
C) marginal utility will become negative.
D) total utility will become negative.

Question

Quizplus · Accepted Answer

As a person consumes more and more of a given good, the additional satisfaction (marginal utility) they receive from each additional unit decreases. This is known as diminishing marginal utility. As a result, total utility will increase at a diminishing rate, meaning that the total satisfaction a person receives from consuming the good will increase, but at a slower and slower pace.

When Diminishing Marginal Utility Starts Happening as a Person Consumes