-The above table shows Homer's total utility from boxes of doughnuts. As Homer's consumption of doughnuts increases
A) both his total utility and his marginal utility increase.
B) his total utility increases, but his marginal utility decreases.
C) his total utility decreases, but his marginal utility increases.
D) both his total utility and his marginal utility decrease.

Question

-The above table shows Homer's total utility from boxes of doughnuts. As Homer's consumption of doughnuts increases
A) both his total utility and his marginal utility increase. 
B) his total utility increases, but his marginal utility decreases. 
C) his total utility decreases, but his marginal utility increases. 
D) both his total utility and his marginal utility decrease.

Quizplus · Accepted Answer

As Homer consumes more doughnuts, his total utility increases due to the additional satisfaction from each box. However, the marginal utility, or the additional satisfaction from each subsequent box, decreases due to the law of diminishing marginal utility.

-The Above Table Shows Homer's Total Utility from Boxes of Doughnuts