Phi eats a hamburger and becomes sick. At this point, Phi's
A) marginal utility is negative.
B) total utility is increasing, but at a decreasing rate.
C) total utility is negative.
D) total utility is at a maximum.

Question

Quizplus · Accepted Answer

When Phi becomes sick from eating a hamburger, it indicates that the last unit consumed (the hamburger) provided a negative experience or disutility, thus making the marginal utility negative. Marginal utility refers to the change in utility (satisfaction or happiness) that comes from consuming an additional unit of a good or service. In this case, consuming the hamburger decreased Phi's overall satisfaction, leading to negative marginal utility.

Phi Eats a Hamburger and Becomes Sick