If the more is better assumption is satisfied, the marginal utility from consuming the second unit must be greater than the marginal utility from consuming the first unit.

Question

Quizplus · Accepted Answer

The "more is better" assumption implies that consuming more of a good or service will increase utility, but it does not specify that the marginal utility of consuming a second unit is greater than the first; in fact, under the law of diminishing marginal utility, the marginal utility typically decreases as consumption increases.

If the More Is Better Assumption Is Satisfied, the Marginal