Howard has just smoked a cigarette.If he chooses to smoke a second one:
A)he will experience a drop in total utility.
B)he is not acting rationally.
C)he will derive less utility from it than his first.
D)None of these is true.

Question

Quizplus · Accepted Answer

According to the law of diminishing marginal utility, as Howard continues to smoke additional cigarettes, the marginal utility he receives from each cigarette will decrease. Therefore, he will derive less utility from the second cigarette than he did from the first.

Howard Has Just Smoked a Cigarette