-Refer to the above table. Amy's utility schedule shows
A) diminishing marginal utility throughout her entire schedule.
B) initially increasing marginal utility and then decreasing marginal utility.
C) initially decreasing marginal utility and then increasing marginal utility.
D) increasing marginal utility throughout her entire schedule.

Question

-Refer to the above table. Amy's utility schedule shows
A) diminishing marginal utility throughout her entire schedule. 
B) initially increasing marginal utility and then decreasing marginal utility. 
C) initially decreasing marginal utility and then increasing marginal utility. 
D) increasing marginal utility throughout her entire schedule.

Quizplus · Accepted Answer

Amy's utility schedule demonstrates diminishing marginal utility because as she consumes more of a good, the additional satisfaction (marginal utility) she gets from each additional unit decreases.

-Refer to the Above Table