Diminishing marginal utility means that as more of a good is consumed
A) the rate at which total utility increases starts to diminish.
B) the rate at which total utility increases stays the same.
C) the rate at which total utility increases starts to increase.
D) there is no impact on the rate of change of total utility.

Question

Quizplus · Accepted Answer

Diminishing marginal utility means that as more of a good is consumed, the additional satisfaction (or utility) derived from each additional unit consumed decreases. This results in the rate at which total utility increases to start diminishing. Therefore, option A is correct.

Diminishing Marginal Utility Means That as More of a Good