True..
because, as consumption of more and more additional unit of a commodity, satisfaction level of consumer decreases.
hence, marginal utility can never increase as consumption increases..

True or False: Marginal Utility Can Never Increase as Consumption Increases
Marginal utility refers to the additional satisfaction or benefit gained from consuming one more unit of a good or service. The statement that "marginal utility can never increase as consumption increases" is generally considered False. Here’s why:
Understanding Marginal Utility
- Definition: Marginal utility is the change in utility (satisfaction) that comes from consuming one additional unit of a good.
- Law of Diminishing Marginal Utility: This economic principle states that as a person consumes more units of a good, the additional satisfaction gained from each subsequent unit tends to decrease.
Exceptions to the Rule
- Initial Consumption: In early stages of consumption, marginal utility may actually increase. For example, in the case of essential goods like food or water, the first few units consumed provide significant satisfaction.
- Situational Factors: Special circumstances, such as scarcity or changes in preferences, can lead to situations where marginal utility increases. For instance, if a consumer has a craving for a particular food, the satisfaction from consuming more may rise.
Conclusion
While the general trend is that marginal utility decreases with increased consumption, it is not an absolute rule. Therefore, the statement that marginal utility can never increase as consumption increases is False, as exceptions can and do occur based on context and individual circumstances.
Understanding these nuances helps in grasping consumer behavior and market dynamics more effectively.