Total utility ________ as a person consumes more of one good and marginal utility ________.
A) increases; increases
B) increases; decreases
C) remains constant; decreases
D) fluctuates; decreases
E) decreases; increases

Question

Quizplus · Accepted Answer

As a person consumes more of one good, total utility will increase up to a certain point, after which it will begin to decrease. This is because the law of diminishing marginal utility states that as a person consumes more of a good, the additional satisfaction (or marginal utility) they receive from each additional unit consumed will begin to decrease. So, as marginal utility decreases, total utility will eventually decrease as well.

Total Utility ________ as a Person Consumes More of One