00:01
Hey everyone, today we're solving problem number 12 from chapter 6 of the textbook, which asks us, is it possible for total utility to increase while marginal utility diminishes? so you guys, you guys should all be familiar with a concept called diminishing marginal utility.
00:25
And i'll give you the answer right up front.
00:28
The answer to the question is that it is a possibility, so yes.
00:33
It is very possible for total utility to rise up or increase as the marginal utility falls.
00:44
And the vocab word i'm writing that you should all know is the reason why it is possible.
00:56
So after i'm finished writing, i'll explain.
01:07
So basically diminishing marginal utility, according to the law of marginal returns from action chapter 2 of the textbook, this is a subset of of it states that each additional unit or utility so each additional utility brings a smaller game than the next one...