If total utility increases at a decreasing rate as a consumer consumes more coffee, then marginal utility must
A) remain constant.
B) increase also.
C) decrease.
D) be negative.

Question

Quizplus · Accepted Answer

If the total utility is increasing at a decreasing rate, this means that each additional unit of coffee consumed is providing less and less additional satisfaction. This means that the marginal utility must be decreasing, as the consumer is getting less additional satisfaction from each additional unit consumed.

If Total Utility Increases at a Decreasing Rate as a Consumer