Increases in total utility from the consumption of a good decrease as more is consumed. This statement is
A) the law of diminishing marginal utility.
B) the law of average utility.
C) the consumer optimum.
D) false.

Question

Quizplus · Accepted Answer

This statement refers to the law of diminishing marginal utility, which states that as more units of a good are consumed, the additional utility gained from each additional unit decreases. This means that the total utility increases at a decreasing rate.

Increases in Total Utility from the Consumption of a Good