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 marginal utility from it than his first.
D) None of these is true.

Question

Quizplus · Accepted Answer

This is because of the law of diminishing marginal utility, which states that as a person consumes more of a good, the additional satisfaction or utility derived from each additional unit of the good decreases. Therefore, Howard will derive less marginal utility from smoking a second cigarette than he did from his first, indicating that it may not be the most rational choice.

Howard Has Just Smoked a Cigarette