Asked by
Morgan Carter
on Nov 04, 2024
Verified
Kathleen likes avocado and crab dip. After eating avocado and crab dip with four crackers, she switches to cheese with crackers. We can conclude that
A) the avocado and crab dip cannot have tasted that good.
B) the avocado and crab dip with crackers now has a marginal utility of zero.
C) at this point cheese and crackers have a higher marginal utility per dollar spent than that of avocado and crab dip with crackers.
D) Kathleen is no longer maximizing her utility.
Marginal Utility
The change in satisfaction or utility a consumer gains from consuming one additional unit of a good or service.
Utility
A measure of satisfaction, usefulness, or value that an individual obtains from consuming a good or service.
Avocado
A fruit with a creamy texture that grows in warm climates, rich in monounsaturated fats and nutrients.
- Apply the framework of maximizing utility to understand consumer preference for various products.
Verified Answer
HK
Learning Objectives
- Apply the framework of maximizing utility to understand consumer preference for various products.