As a person consumes more of a good or service, the person's _____ will increase. At the same time, this person's _____ will decrease with each additional unit.
A) marginal utility; total utility
B) total utility; marginal utility
C) marginal utility; cost
D) cost; total utility

Question

Quizplus · Accepted Answer

As a person consumes more of a good or service, their total utility (overall satisfaction) increases because they are getting more of something they value. However, the marginal utility (satisfaction gained from consuming one additional unit) decreases due to the law of diminishing marginal utility, which states that as a person consumes more units of a good, the satisfaction gained from consuming each additional unit decreases.

As a Person Consumes More of a Good or Service