Suppose that the first cup of coffee in the morning gives you 30 units of utility, the second cup gives you 20 units of utility, and the third cup gives you 5 units of utility. The total utility from consuming coffee is _____ and the marginal utility is _____.
A) rising; rising
B) rising; falling
C) falling; rising
D) falling; falling

Question

Quizplus · Accepted Answer

The total utility increases with each cup of coffee consumed (30 units for the first cup, 50 units after the second, and 55 units after the third), indicating that total utility is rising. However, the additional satisfaction (marginal utility) from each subsequent cup decreases (30 units for the first cup, 20 for the second, and 5 for the third), indicating that marginal utility is falling.

Suppose That the First Cup of Coffee in the Morning