Louise loves to eat chocolate. However, every piece of chocolate that Louise eats provides her with less total utility. What can we conclude about Louise's utility from this information?

Question

Quizplus · Accepted Answer

The information provided suggests that as Louise eats more chocolate, her total utility increases at a decreasing rate. This is consistent with the law of diminishing marginal utility, which states that as a consumer consumes more of a good, the additional satisfaction (i.e. marginal utility) from consuming each additional unit decreases. Therefore, the correct answer is C - her marginal utility is diminishing.

Louise Loves to Eat Chocolate