c c Units of quantity Total utility Marginal utility 0 - - 1 10 10 2 15 5 3 17 2 4 18 1 5 18 0 The table…

Analyze the question: The table shows total utility and marginal utility as more units of a good are consumed. We need to name the economic law it illustrates.

Concept:

• Total utility (TU) is the total satisfaction from consuming all units.
• Marginal utility (MU) is the extra satisfaction from consuming one more unit: MU = TUₙ − TUₙ₋₁.
• The law of diminishing marginal utility says that as a consumer takes more units of a good, the extra satisfaction from each additional unit falls.

Step-by-step solution:

1. Check the marginal utility column: • 1st unit: 10 − 0 = 10 • 2nd unit: 15 − 10 = 5 • 3rd unit: 17 − 15 = 2 • 4th unit: 18 − 17 = 1 • 5th unit: 18 − 18 = 0

2. MU keeps falling: 10 → 5 → 2 → 1 → 0.

3. Total utility still rises, but at a decreasing rate (10, 15, 17, 18, 18), until it reaches a maximum (18) where MU = 0.

4. Check the options: • A. "Admonishing returns" is not an economic term (it is a distractor, a misspelling of "diminishing returns"). Diminishing returns also concerns production, not consumption. • B. Increasing returns concerns production, and MU is not rising. • C. Diminishing marginal utility fits, since MU falls with each extra unit. • D. Increasing marginal utility is wrong because MU decreases.

**Answer: C.

Exam tip: If a table has a marginal utility column, look at its direction. If it falls as units increase, it is diminishing marginal utility. Also remember that when MU = 0, TU is at its maximum (the point of satiety). Watch out for "returns" options, since those relate to production, not consumer satisfaction.