As Sally increases her consumption of a good, she experiences diminishing marginal utility if her total utility
A) increases at a constant rate.
B) increases at a decreasing rate.
C) increases at an increasing rate.
D) decreases.

Question

Quizplus · Accepted Answer

Diminishing marginal utility occurs when each additional unit of a good provides less additional satisfaction than the previous one, meaning total utility increases at a decreasing rate.

As Sally Increases Her Consumption of a Good, She Experiences