4) Total utility
declines if
consumption
continues.
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1
Answer:
Marginal utility always declines for each successive quantity of consumption. ... As can be seen in these diagrams, total utility increases with increasing quantity of a single item until marginal utility = 0; thereafter, total utility declines when marginal utility becomes negative.
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We all know about the law of diminishing marginal utility - it says that as you consume anything more and more, the extra satisfaction that you get by consuming one more unit, keeps on decreasing.
But this question is different, it asks why does this happen?
It’s an elegant and curious question, but cannot be so simply answered.
I could say that this is how human beings are, but that wouldn’t be a satisfactory reply. But let us try to articulate it as much as we can.
It goes back to the basic concepts of economics - Human desires are unlimited (we want to have everything); but the resources are limited (we cannot have everything). Hence, we need to choose between available options.
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But this question is different, it asks why does this happen?
It’s an elegant and curious question, but cannot be so simply answered.
I could say that this is how human beings are, but that wouldn’t be a satisfactory reply. But let us try to articulate it as much as we can.
It goes back to the basic concepts of economics - Human desires are unlimited (we want to have everything); but the resources are limited (we cannot have everything). Hence, we need to choose between available options.
Mark me as brainliest
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