Sadie has just eaten a donut that gave her a utility of 6. If she chooses to eat another donut, we can assume that:
A)she will receive an increase in utility of more than 6 from the additional donut.
B)she will receive a decrease in utility from the additional donut.
C)she will receive an increase in utility of less than 6 from the additional donut.
D)her total utility will fall because of diminishing marginal utility.

Question

Quizplus · Accepted Answer

The concept of diminishing marginal utility suggests that as a person consumes more of a good, the additional satisfaction (utility) gained from consuming an extra unit of the good decreases. Therefore, if Sadie eats another donut, the utility she receives from it will be positive but less than the utility of 6 she received from the first donut.

Sadie Has Just Eaten a Donut That Gave Her a Utility