Asked by
Chingkhei Meetei
on Nov 04, 2024
Verified
Ricardo eats 20 pieces of sushi on a Friday night. When he eats the 21st piece, he starts to feel nauseous and realizes he probably should not have eaten the last piece. This suggests that for Ricardo the
A) marginal utility of the 21st piece of sushi is positive and increasing.
B) marginal utility of the 21st piece of sushi is negative.
C) total utility of pieces of sushi is increasing.
D) total utility of pieces of sushi is increasing by larger and larger increments.
Marginal Utility
The additional satisfaction or usefulness obtained from acquiring or consuming one more unit of a good or service.
- Understand the principle of diminishing marginal utility and its impact on consumer choices.
Verified Answer
AZ
Learning Objectives
- Understand the principle of diminishing marginal utility and its impact on consumer choices.