Asked by
Cameron Mcconnell
on Nov 04, 2024Verified
Kathy eats five slices of pizza on a Saturday night but admits each slice of pizza doesn't taste as good as the previous one. This suggests that for Kathy the
A) marginal utility of a slice of pizza is positive but decreasing.
B) marginal utility of a slice of pizza is negative.
C) total utility of slices of pizza is declining.
D) total utility of slices of pizza is increasing by larger and larger increments.
Marginal Utility
The additional satisfaction or utility received by a consumer from consuming one more unit of a good or service.
Total Utility
The sum satisfaction or benefit a consumer receives from consuming a particular quantity of a good or service.
- Understand the concept of diminishing marginal utility and its impact on consumer decision-making.
Verified Answer
MM
Learning Objectives
- Understand the concept of diminishing marginal utility and its impact on consumer decision-making.