Marginal utility can fall even as total utility from the consumption of a good is rising.

Question

Quizplus · Accepted Answer

Marginal utility is the additional utility gained from consuming one more unit of a good. It can fall as more of the good is consumed, even if the total utility (the overall satisfaction from consuming the good) is still increasing. This is due to the diminishing marginal utility of the good, meaning that each additional unit provides less and less utility than the previous one.

Marginal Utility Can Fall Even as Total Utility from the Consumption