As marginal utility decreases,total utility
A) decreases by the same amount.
B) increases by the same amount.
C) increases by the inverse of marginal utility.
D) increases at a decreasing rate.
E) decreases at an increasing rate.

Question

Quizplus · Accepted Answer

As marginal utility decreases, total utility increases but at a decreasing rate. This means that each additional unit consumed adds less and less to the total utility. Therefore, total utility increases but not by the same amount as marginal utility decreases, and not at a constant rate.

As Marginal Utility Decreases,total Utility