The reason that you don't drink five cups of coffee at breakfast is that
A)the marginal utility of extra cups of coffee eventually diminishes
B)most people cannot afford five cups
C)the total utility of coffee rises as you consume more cups
D)the price of coffee rises as you buy more cups
E)the marginal satisfaction derived from cups of coffee remains constant

Question

Quizplus · Accepted Answer

The concept of diminishing marginal utility states that as you consume more of a good, the extra satisfaction or utility derived from each additional unit consumed decreases. Eventually, the marginal utility may become negative, meaning that consuming more of the good actually decreases overall satisfaction. Therefore, in the case of coffee, the marginal utility of extra cups eventually diminishes, making it less appealing to continue drinking more cups at breakfast.

The Reason That You Don't Drink Five Cups of Coffee