The marginal utility of a good must be increased by anything that increases total utility.

Question

Quizplus · Accepted Answer

The marginal utility of a good refers to the additional satisfaction or utility that a consumer receives from consuming one more unit of a good or service. It can decrease even if the total utility increases because as more of a good is consumed, the satisfaction from consuming additional units typically decreases. This is known as the law of diminishing marginal utility. Total utility can continue to increase at a decreasing rate while marginal utility decreases.

The Marginal Utility of a Good Must Be Increased by Anything