Use the following to answer questions:
-(Table: Alaina's Utility from Consuming Cups of Coffee) Look at the table Alaina's Utility from Consuming Cups of Coffee. Given the information in the table, Alaina's total utility from drinking coffee:
A) decreases as she consumes additional coffee.
B) increases at a decreasing rate as she consumes more coffee.
C) stays constant as she consumes more coffee.
D) equals zero.

Question

Use the following to answer questions: 
-(Table: Alaina's Utility from Consuming Cups of Coffee) Look at the table Alaina's Utility from Consuming Cups of Coffee. Given the information in the table, Alaina's total utility from drinking coffee:
A) decreases as she consumes additional coffee. 
B) increases at a decreasing rate as she consumes more coffee. 
C) stays constant as she consumes more coffee. 
D) equals zero.

Quizplus · Accepted Answer

Alaina's total utility increases at a decreasing rate as she consumes more coffee due to the law of diminishing marginal utility, which states that as a person consumes more of a good, the additional satisfaction gained from consuming an additional unit decreases.

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