As more of any one good is consumed in a given period,its
A) total utility decreases then remains constant.
B) marginal utility decreases.
C) total utility decreases then increases.
D) marginal utility increases.

Question

Quizplus · Accepted Answer

According to the law of diminishing marginal utility, as more of any one good is consumed in a given period, the additional satisfaction or utility derived from each additional unit consumed decreases. This leads to a decrease in the marginal utility of the good. Total utility may continue to increase as long as marginal utility is positive, but it will eventually decrease as marginal utility turns negative. Therefore, option B is the best choice.

As More of Any One Good Is Consumed in a Given