As consumption increases, total utility increases
A) at an increasing rate.
B) at a decreasing rate.
C) at a constant rate.
D) and marginal utility increases.

Question

Quizplus · Accepted Answer

As consumption increases, total utility increases at a decreasing rate due to the law of diminishing marginal utility, which states that as more of a good is consumed, the additional satisfaction from consuming an additional unit decreases.

As Consumption Increases, Total Utility Increases