As people consume more and more of a particular good or service, we can predict

Question

As people consume more and more of a particular good or service, we can predict that a. Marginal utility of each additional good consumed will fall and total utility will increase, but more rapidly than before b. Marginal utility of each additional good consumed will fall and total utility will increase, but more slowly than before c. Marginal utility of each additional good consumed will rise and total utility will increase, but more rapidly than before d. Marginal utility of each additional good consumed will rise and total utility will increase, but more slowly than before.

Explanation / Answer

The laW OF DIMINISHING RETURNS STATE THAT Maginal utility from each additional unit of the good will decline as we increase the consumption of the commodity and thus total utility will increase at a declining rate.

Thus, Option b

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