A dehydrated person has two glasses of water. Compared with the person's first glass of water, total utility after the second glass will
A) increase and marginal utility will decrease.
B) increase and marginal utility will increase.
C) decrease and marginal utility will increase.
D) decrease and marginal utility will decrease.

Question

Quizplus · Accepted Answer

The concept of diminishing marginal utility explains that while total utility increases with consumption, the additional satisfaction (marginal utility) gained from consuming each additional unit decreases. After the first glass of water, the person's total utility increases with the second glass, but the satisfaction from the second glass is less than from the first, hence marginal utility decreases.

A Dehydrated Person Has Two Glasses of Water