The correct answer is D. total utility will rise at a falling rate as more units are consumed.
The law of diminishing marginal utility states that as a person consumes more of a good or service, the additional satisfaction or benefit they receive from each additional unit decreases. In other words, the first unit of a good or service will provide the most satisfaction, the second unit will provide less satisfaction, and so on.
This law is based on the idea that people have limited wants and resources. When a person first consumes a good or service, they have a strong desire for it and will receive a lot of satisfaction from it. However, as they consume more of the good or service, their desire for it decreases and they will receive less satisfaction from each additional unit.
The law of diminishing marginal utility can be applied to many different goods and services. For example, if you are very hungry, the first bite of food you eat will provide you with a lot of satisfaction. However, as you continue to eat, your hunger will decrease and you will receive less satisfaction from each additional bite.
The law of diminishing marginal utility is an important concept in economics. It helps to explain why people are willing to pay more for the first unit of a good or service than they are for subsequent units. It also helps to explain why people often consume goods and services in a way that maximizes their total utility.
Option A is incorrect because utility is not at a maximum with the first unit. In fact, utility is typically at its maximum when the person has consumed a moderate amount of the good or service.
Option B is incorrect because increasing units of consumption do not increase the marginal utility. In fact, the marginal utility decreases as more units are consumed.
Option C is incorrect because marginal product is the additional output that is produced by an additional unit of input. The law of diminishing marginal utility does not apply to marginal product.