As an individual consumes more of a particular commodity, the total level of utility derived from that consumption usually
A) increases at a constant rate.
B) increases at an increasing rate.
C) increases at a decreasing rate.
D) decreases at an increasing rate.

Question

Quizplus · Accepted Answer

The law of diminishing marginal utility states that as an individual consumes more of a particular commodity, the total level of utility derived from that consumption increases at a decreasing rate. This means that the more of a good or service someone consumes, the less additional satisfaction they derive from each additional unit consumed. Therefore, the increase in total utility becomes smaller and smaller.

As an Individual Consumes More of a Particular Commodity, the Total