If marginal utility is diminishing, then total utility is concave.

Question

Quizplus · Accepted Answer

The law of diminishing marginal utility states that as consumption of a good or service increases, the additional satisfaction from each additional unit decreases. This means that the marginal utility curve is downward sloping, implying that the total utility curve will be concave (curving downward) as the additional satisfaction from each unit consumed is decreasing at a diminishing rate. This statement is true according to the law of diminishing marginal utility, which states that as one consumes more units of a good, the satisfaction gained from each additional unit decreases. Therefore, the total utility gained from consuming the good will increase at a decreasing rate, resulting in a concave shape for the total utility curve.

If Marginal Utility Is Diminishing, Then Total Utility Is Concave