As an individual consumes more of a good,total utility always increases and marginal utility always decreases.

Question

Quizplus · Accepted Answer

This statement is incorrect. Initially, both total utility and marginal utility increase as more of a good is consumed (law of diminishing marginal utility). However, at some point, total utility will begin to decrease (due to satiation or overconsumption) while marginal utility will continue to decrease.

As an Individual Consumes More of a Good,total Utility Always