Grace has received a utility of 8 from eating a slice of pizza. If she chooses to eat a second slice:
A)she will experience a drop in total utility.
B)she would not be acting rationally.
C)she will experience an increase in total utility.
D)None of these are true.

Question

Quizplus · Accepted Answer

Eating a second slice of pizza will increase Grace's total utility, as utility measures the total satisfaction received from consuming a good or service. The concept of diminishing marginal utility suggests that while the additional satisfaction (marginal utility) from consuming a second slice may be less than the first, the total utility still increases with each additional unit consumed until a certain point.

Grace Has Received a Utility of 8 from Eating a Slice