-The above table shows Homer's utility from boxes of doughnuts. As Homer's consumption of doughnuts increases, his
A) marginal utility is positive and increasing.
B) marginal utility is positive but decreasing.
C) marginal utility is negative but increasing.
D) marginal utility is negative and decreasing.

Question

-The above table shows Homer's utility from boxes of doughnuts. As Homer's consumption of doughnuts increases, his
A) marginal utility is positive and increasing. 
B) marginal utility is positive but decreasing. 
C) marginal utility is negative but increasing. 
D) marginal utility is negative and decreasing.

Quizplus · Accepted Answer

As Homer consumes more doughnuts, the additional satisfaction (marginal utility) he gets from each additional box decreases, which is typical due to the law of diminishing marginal utility.

-The Above Table Shows Homer's Utility from Boxes of Doughnuts