Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 6 - Consumer Behavior - Questions: 1a


Total utility is increasing at a decreasing rate. This is due to the marginal utility decreasing as the units consumed increase.

Work Step by Step

Total utility is the amount of usefulness a product, or multiple products provide to a consumer (buyer). Marginal utility is the amount of additional usefulness an extra unit of product provides to a consumer. The table provided in the question states that as extra units of product are being consumed at a linear rate, the total utility increases, but the marginal utility decreases
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.