Use the following to answer questions:
-(Table: Alaina's Utility from Consuming Cups of Coffee) Look at the table Alaina's Utility from Consuming Cups of Coffee. Diminishing marginal utility:
A) is not present in Alaina's consumption of coffee, since her total utility keeps increasing.
B) is present in Alaina's consumption of coffee, since her total utility increases at a decreasing rate with each cup consumed.
C) is equal to zero.
D) is not present, since Alaina exhibits increasing marginal utility.

Question

Use the following to answer questions: 
-(Table: Alaina's Utility from Consuming Cups of Coffee) Look at the table Alaina's Utility from Consuming Cups of Coffee. Diminishing marginal utility:
A) is not present in Alaina's consumption of coffee, since her total utility keeps increasing. 
B) is present in Alaina's consumption of coffee, since her total utility increases at a decreasing rate with each cup consumed. 
C) is equal to zero. 
D) is not present, since Alaina exhibits increasing marginal utility.

Quizplus · Accepted Answer

Diminishing marginal utility is present because although Alaina's total utility increases with each additional cup of coffee, the rate of increase (marginal utility) decreases with each additional cup.

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