For all goods other than those that are addictive, and assuming that the quantity consumed is not so large that the last units consumed generate negative marginal utilities, we can say that, for the consumer, as more of the good is consumed, its marginal utility_____ while its total utility _____.
A) increases; decreases
B) decreases; increases
C) increases; increases
D) decreases; decreases
E) no general rule can be made here

Question

Quizplus · Accepted Answer

Marginal utility decreases because of the law of diminishing marginal utility, which states that as a person consumes more of a good, the additional satisfaction from consuming an extra unit of the good decreases. Total utility increases because with each additional unit consumed, even though the added satisfaction is less, it still adds to the overall satisfaction or utility.

For All Goods Other Than Those That Are Addictive, and Assuming