The last $200 of Tami's wealth added more to her utility than another $200 would.Based on this information,Tami's utility function
A) and marginal utility function are both upward sloping.
B) and marginal utility function are both downward sloping.
C) is upward sloping and her marginal utility function is downward sloping.
D) is downward sloping and her marginal utility function is upward sloping.

Question

Quizplus · Accepted Answer

This information suggests that Tami's marginal utility is decreasing as she consumes more, indicating a downward sloping marginal utility function. However, her total utility is still increasing with each additional unit consumed, implying an upward sloping utility function. Therefore, the correct answer is option C.

The Last $200 of Tami's Wealth Added More to Her