Asked by
Joseline Ortega
on Oct 27, 2024
Verified
(Table: Alaina's Utility from Consuming Cups of Coffee) Use Table: Alaina's Utility from Consuming Cups of Coffee.Diminishing marginal utility is:
A) not present in Alaina's consumption of coffee since her total utility keeps increasing.
B) present in Alaina's consumption of coffee since her total utility increases at a decreasing rate with each cup consumed.
C) equal to 0 utils.
D) not present since Alaina exhibits increasing marginal utility.
Diminishing Marginal Utility
The principle that as more of a good or service is consumed, the additional satisfaction or utility gained from consuming an additional unit declines.
Total Utility
The total satisfaction or benefit received by consuming a given total quantity of a good or service.
Utils
A theoretical unit of measurement used in economics to represent satisfaction or utility obtained by consuming goods and services.
- Recognize the essential nature of the diminishing marginal utility concept and its impact on the preferences of consumers.
Verified Answer
MG
Learning Objectives
- Recognize the essential nature of the diminishing marginal utility concept and its impact on the preferences of consumers.