-The above table shows Homer's utility from boxes of doughnuts. If Homer decreases his consumption of doughnuts from 4 boxes to 3 boxes, his
A) total utility and marginal utility will both decrease.
B) total utility will decrease, but his marginal utility will increase.
C) total utility will increase, but his marginal utility will decrease.
D) total utility and marginal utility will both increase.

Question

-The above table shows Homer's utility from boxes of doughnuts. If Homer decreases his consumption of doughnuts from 4 boxes to 3 boxes, his
A) total utility and marginal utility will both decrease. 
B) total utility will decrease, but his marginal utility will increase. 
C) total utility will increase, but his marginal utility will decrease. 
D) total utility and marginal utility will both increase.

Quizplus · Accepted Answer

When Homer decreases his consumption from 4 boxes to 3 boxes, his total utility decreases because he is consuming fewer doughnuts. However, his marginal utility increases because the marginal utility of the third box is higher than that of the fourth box, reflecting the principle of diminishing marginal utility.

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