Which of the following statements is TRUE?
A) As more of a good is consumed, its total utility increases, unless the good is subject to diminishing marginal utility.
B) As more of a good is consumed, its total utility increases, even if the good is subject to diminishing marginal utility.
C) No two people have identical utility functions, just as no two people have identical fingerprints.
D) Both A and C above.

Question

Quizplus · Accepted Answer

Total utility increases as more of a good is consumed, even if the good is subject to diminishing marginal utility, because diminishing marginal utility refers to the decrease in the additional satisfaction from consuming an additional unit, not the total satisfaction.

Which of the Following Statements Is TRUE