The concept of diminishing marginal utility means that a graph representing total utility will be
A) downward-sloping.
B) upward-sloping.
C) impossible to generalize without a data set.
D) downward-facing concave.
E) upward-facing concave.

Question

Quizplus · Accepted Answer

The concept of diminishing marginal utility means that as more of a good is consumed, the additional satisfaction (marginal utility) derived from each additional unit decreases. This means that the total utility curve will be downward-facing concave, as the slope of the curve will decrease as more of the good is consumed.

The Concept of Diminishing Marginal Utility Means That a Graph