-The above table shows Homer's utility from boxes of doughnuts.If Homer decreases his consumption of doughnuts from 4 boxes to 3 boxes,his
A) total utility and marginal utility will both decrease.
B) total utility will decrease, but his marginal utility will increase.
C) total utility will increase, but his marginal utility will decrease.
D) total utility and marginal utility will both increase.
E) None of the above answers are correct.

Question

-The above table shows Homer's utility from boxes of doughnuts.If Homer decreases his consumption of doughnuts from 4 boxes to 3 boxes,his
A) total utility and marginal utility will both decrease. 
B) total utility will decrease, but his marginal utility will increase. 
C) total utility will increase, but his marginal utility will decrease. 
D) total utility and marginal utility will both increase. 
E) None of the above answers are correct.

Quizplus · Accepted Answer

When Homer decreases his consumption from 4 boxes to 3 boxes, his total utility decreases because he is consuming fewer boxes. However, the marginal utility of the third box is higher than the marginal utility of the fourth box, so his marginal utility increases.

-The Above Table Shows Homer's Utility from Boxes of Doughnuts