-Sam's total utility for bananas is in the table above.Sam's total utility shows that the law of diminishing marginal utility
A) holds because his marginal utility from bananas decreases as Sam eats more bananas.
B) does not hold because Sam's total utility does not reach its maximum.
C) does not hold because Sam's marginal utility does not decrease to zero.
D) holds because Sam's total utility from bananas increases as Sam eats more bananas.
E) None of the above answers is correct because there are no data for marginal utility with which to answer the question.

Question

-Sam's total utility for bananas is in the table above.Sam's total utility shows that the law of diminishing marginal utility
A) holds because his marginal utility from bananas decreases as Sam eats more bananas. 
B) does not hold because Sam's total utility does not reach its maximum. 
C) does not hold because Sam's marginal utility does not decrease to zero. 
D) holds because Sam's total utility from bananas increases as Sam eats more bananas. 
E) None of the above answers is correct because there are no data for marginal utility with which to answer the question.

Quizplus · Accepted Answer

The law of diminishing marginal utility states that as a consumer consumes more of a good, the additional satisfaction (marginal utility) derived from each additional unit of the good decreases. In the table, Sam's total utility for bananas increases as he eats more bananas, but the increase in total utility becomes smaller as he eats more bananas. This indicates that the law of diminishing marginal utility holds.

-Sam's Total Utility for Bananas Is in the Table Above