As a consumer buys more of a good,the total utility from consumption of the good always increases at an increasing rate.

Question

Quizplus · Accepted Answer

The law of diminishing marginal utility states that as a consumer buys more of a good, the additional satisfaction or utility gained from each additional unit consumed decreases, eventually leading to a decrease in total utility at an increasing rate. Therefore, the statement is false as the rate of increase in total utility decreases with each additional unit consumed.

As a Consumer Buys More of a Good,the Total Utility