Asked by
Alaina Lovshe
on Nov 25, 2024
Verified
If marginal utility is diminishing, total utility must also be declining.
Diminishing Marginal Utility
The principle that as a person consumes more of a good, the satisfaction (utility) gained from each additional unit decreases.
Total Utility
The total satisfaction or benefit a consumer receives from consuming a particular quantity of a good or service.
- Gain insight into the idea of marginal utility and how it correlates with total utility.
- Understand the significance of the law of diminishing marginal utility and its effects on consumer choices.
Verified Answer
LV
Learning Objectives
- Gain insight into the idea of marginal utility and how it correlates with total utility.
- Understand the significance of the law of diminishing marginal utility and its effects on consumer choices.
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