TABLE 6-5

-Refer to Table 6-5. The table shows Bennett's total utility from each bag of potato chips and can of soda pop he consumes. Which can of soda pop has the highest marginal utility?
A) the first can
B) the second can
C) the fourth can
D) the fifth can

Question

TABLE 6-5
 
-Refer to Table 6-5. The table shows Bennett's total utility from each bag of potato chips and can of soda pop he consumes. Which can of soda pop has the highest marginal utility?
A) the first can 
B) the second can 
C) the fourth can 
D) the fifth can

Quizplus · Accepted Answer

The first can of soda pop has the highest marginal utility because marginal utility is the additional satisfaction or utility that a person receives from consuming an additional unit of a good or service. Since the table is not provided, we typically assume that the first unit of consumption provides the highest marginal utility due to the principle of diminishing marginal utility, which states that as a person consumes more units of a good, the additional satisfaction from each additional unit tends to decrease.

TABLE 6-5 -Refer to Table 6-5. the Table Shows Bennett's Total Utility