Question

The campus bookstore

sells a campus mug

for ​$10
.
When you buy a second campus mug
​,
​however, its price is only ​$6
.
How does this relate to marginal​ utility?
Part 2
A.
As more is​ consumed, the marginal utility increases so consumers are willing to purchase more at higher prices.
B.
Increases in total utility from the consumption of campus mug
s
become larger as more is consumed so consumers will pay more.
C.
Since marginal utility falls as additional units of the good are​ consumed, consumers are only willing to purchase more as the price falls.
D.
The cost of a campus mug

becomes cheaper as more are consumed.

Answer 1

C. Since marginal utility falls as additional units of the good are consumed, consumers are only willing to purchase more as the price falls.