When total utility _____ at a decreasing rate, marginal utility:
A) increases; increases.
B) increases; decreases.
C) decreases; stays the same.
D) decreases; increases.

Question

Quizplus · Accepted Answer

When total utility increases at a decreasing rate, it means that each additional unit of consumption adds less to the total utility than the previous unit, which is the definition of decreasing marginal utility.

When Total Utility _____ at a Decreasing Rate, Marginal Utility