If the more is better assumption is satisfied, total utility will increase as consumption increases.

Question

Quizplus · Accepted Answer

The more is better assumption implies that as consumption increases, the marginal utility of each additional unit consumed may decrease, but the total utility will still increase. Therefore, if this assumption is satisfied, total utility will increase as consumption increases. The more is better assumption means that the consumer derives greater satisfaction from larger quantities of a good or service. Therefore, as consumption increases, total utility will also increase.

If the More Is Better Assumption Is Satisfied, Total Utility