Diminishing marginal utility and increasing total utility are incompatible with each other.

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Quizplus · Accepted Answer

Diminishing marginal utility refers to the decrease in additional satisfaction or usefulness as more units of a product are consumed, while increasing total utility refers to the overall increase in satisfaction or usefulness as more units of a product are consumed. These concepts are not incompatible with each other and can coexist. As the marginal utility of each unit decreases, the total utility can still increase as long as more units are consumed. Diminishing marginal utility means that as an individual consumes more of a certain good, the utility or satisfaction derived from each additional unit of the good decreases. However, increasing total utility means that as an individual consumes more of a certain good, the total utility or satisfaction derived from all units of the good increases. These concepts are not incompatible with each other, as an individual can experience both diminishing marginal utility and increasing total utility at the same time.

Diminishing Marginal Utility and Increasing Total Utility Are Incompatible with Each