The reason why Diana does not drink five cups of coffee at breakfast is that _____
A)the marginal utility derived from the fifth cup of coffee is negative.
B)the marginal satisfaction derived from the fifth cup of coffee rises.
C)the total utility from the consumption of coffee rises as she consumes more coffee.
D)the total utility from the consumption of coffee becomes negative as she consumes more coffee.
E)the marginal satisfaction derived from all five cups of coffee is constant.

Question

Quizplus · Accepted Answer

The law of diminishing marginal utility states that as one consumes more units of a good, the additional satisfaction that is derived from each additional unit decreases. Therefore, it is likely that the marginal utility Diana derives from the fifth cup of coffee is negative, which means that its consumption would actually decrease her total utility rather than increase it.

The Reason Why Diana Does Not Drink Five Cups of Coffee