TABLE 6-5

-Refer to Table 6-5. The table shows Bennett's total utility from each bag of potato chips and can of soda pop he consumes. As he consumes more soda pop, what happens to his marginal utility?
A) It increases.
B) It decreases.
C) It stays constant.
D) It first increases and then decreases.

Question

TABLE 6-5
 
-Refer to Table 6-5. The table shows Bennett's total utility from each bag of potato chips and can of soda pop he consumes. As he consumes more soda pop, what happens to his marginal utility?
A) It increases. 
B) It decreases. 
C) It stays constant. 
D) It first increases and then decreases.

Quizplus · Accepted Answer

As Bennett consumes more soda pop, his marginal utility decreases. This is known as the law of diminishing marginal utility, which states that as a consumer increases consumption of a good or service, the marginal utility obtained from each additional unit of the good or service decreases.

TABLE 6-5 -Refer to Table 6-5. the Table Shows Bennett's Total Utility