Linus has just watched two hours of TV.We can say:
A) his second hour of watching TV likely reduced his total utility.
B) his second hour of watching TV likely added less to his total utility than did the first.
C) if he watches a third hour it will likely decrease his total utility.
D) if he watches a third hour it will likely increase his total utility by at least as much as the second.

Question

Quizplus · Accepted Answer

According to the law of diminishing marginal utility, the additional utility gained from consuming each unit of a good or service decreases as more of it is consumed. Therefore, it is likely that the second hour of watching TV added less to his total utility than the first hour. Option A and C are not necessarily true as it depends on his preferences and the quality of the TV content. Option D may not be true as the law of diminishing marginal utility suggests that the additional utility gained from each subsequent hour may decrease even further.

Linus Has Just Watched Two Hours of TV