Question

Would you expect the total utility to rise or fall with additional consumption of a good? Why?

Short answer

Yes, total utility rises till the point where the marginal utility is positive.

Step-by-step solution

Step 1:Definition

Total Utility and Marginal Utility:

In economics, total utility and marginal utility are concepts under utility that assist determine a consumer's level of satisfaction. The total utility refers to the whole amount of pleasure derived by a customer from the consumption of a specific amount of products. Marginal utility, on the other hand, refers to the additional utility gained by a consumer from the consumption of one additional unit of the good.

Step 2:Explanation

In general, better total utility is associated with more consumption of a good. The additional utility gained from each unit of higher consumption, on the other hand, tends to reduce in a diminishing marginal utility pattern. The amount of utility derived from eating goods is determined by the individual's preferences.

Step 3:Conclusion

Therefore, the amount at which marginal utility drops determines whether overall utility rises or falls with further consumption of a good.