As more satisfaction is achieved from consuming a good with diminishing marginal utility,then total utility
A)Increases at a decreasing rate.
B)Decreases as long as marginal utility is negative.
C)Decreases as long as marginal utility is positive.
D)Is negative as long as marginal utility is decreasing.

Question

Quizplus · Accepted Answer

Diminishing marginal utility means that as more of a good is consumed, the additional satisfaction gained from each additional unit consumed decreases. However, the total utility still increases as consumption increases. This increase in total utility, however, occurs at a decreasing rate because each additional unit consumed provides less and less additional satisfaction.

As More Satisfaction Is Achieved from Consuming a Good with Diminishing