This graph shows a consumer's total utility from eating hamburgers in a single meal.

Which of the following characteristics of the $T U$ function is explained by the law of diminishing marginal utility?

Choose 1 answer:
(A) the fact that the $T U$ function slopes upward for some of the total utility curve
(B) the fact that $T U$ function's slope starts steep but decreases until the $3^{ ext {rd }}$ hamburger and then becomes downward sloping
(c) the fact that the $T U$ function starts at 0
(D) the fact that the $T U$ function is always positive
(E) the fact that the $T U$ depends on the quantity consumed
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Marginal utility and total utility
$12: 14$
Visualizing marginal utility MU and total utility TU functions
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Question

This graph shows a consumer's total utility from eating hamburgers in a single meal.

Which of the following characteristics of the $T U$ function is explained by the law of diminishing marginal utility?

Choose 1 answer:
(A) the fact that the $T U$ function slopes upward for some of the total utility curve
(B) the fact that $T U$ function's slope starts steep but decreases until the $3^{	ext {rd }}$ hamburger and then becomes downward sloping
(c) the fact that the $T U$ function starts at 0
(D) the fact that the $T U$ function is always positive
(E) the fact that the $T U$ depends on the quantity consumed
Related content
Marginal utility and total utility
$12: 14$
Visualizing marginal utility MU and total utility TU functions
Report a problem

Accepted Answer

∻Solution∻ ‖ a ⋮ Law of Diminishing Marginal Utility: The law of diminishing marginal utility states that as a consumer consumes more units of a good, the additional satisfaction (marginal utility) gained from consuming each additional unit decreases. ‖ ‖ b ⋮ Total Utility Function: The total utility (TU) function initially increases as the consumer consumes more hamburgers, reflecting positive marginal utility. However, after a certain point, the additional utility from consuming more hamburgers decreases, causing the slope of the TU function to decrease and eventually become negative. ‖ ‖ c ⋮ Graph Analysis: In the given graph, the TU function slopes upward initially, indicating increasing total utility. The slope starts steep but decreases until the 3rd hamburger, after which it becomes downward sloping, indicating diminishing marginal utility and eventually negative marginal utility. ‖ ∻Answer∻ ⚹ (B) the fact that $T U$ function's slope starts steep but decreases until the $3^{ ext {rd }}$ hamburger and then becomes downward sloping ⚹ ∻Key Concept∻ ⚹ Law of Diminishing Marginal Utility ⚹ ∻Explanation∻ ⚹ The law of diminishing marginal utility explains that as more units of a good are consumed, the additional satisfaction from each additional unit decreases. This is reflected in the TU function's slope, which starts steep (high marginal utility) but decreases and eventually becomes negative (diminishing and negative marginal utility). ⚹◊How does the concept of diminishing marginal utility relate to the shape of the total utility function in the given scenario?⍭ Generate me a similar question◊

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