Asked by
Amber Lewis
on Dec 11, 2024
Verified
A local restaurant offers an "all you can eat" barbeque special. You pay $9.00, and then you can eat as many servings as you desire at no additional cost. It would follow that you will stop eating when
A) your marginal utility (or value) derived from eating another serving is zero.
B) your total utility (or value) derived from all of the servings consumed just equals $9.00.
C) your marginal utility (or value) derived from another serving equals $9.00.
D) it is physically impossible for you to eat any more.
Marginal Utility
The additional satisfaction or utility gained by consuming one more unit of a good or service.
Total Utility
The total satisfaction received from consuming a given total quantity of a good or service.
- Recognize how the principle of diminishing marginal utility affects consumer choices.
- Appreciate the contribution of marginal utility to the optimization of consumption decisions.
Verified Answer
KG
Learning Objectives
- Recognize how the principle of diminishing marginal utility affects consumer choices.
- Appreciate the contribution of marginal utility to the optimization of consumption decisions.