Suppose that there are five bottles of lemonade,each of which gives the consumer the same level of utility.According to the law of diminishing marginal utility,how can one receive the highest utility?
A)Consume all five bottles in the next hour
B)Consume all five bottles today
C)Consume all five bottles in one day next week
D)Consume two bottles today and three tomorrow
E)Consume one bottle each day for the next five days

Question

Quizplus · Accepted Answer

According to the law of diminishing marginal utility, the marginal utility of each additional bottle of lemonade consumed will decrease. Therefore, it is better to spread out the consumption of the five bottles over a longer period of time to maximize the total utility. Consuming one bottle per day for five days ensures that each bottle provides the same level of satisfaction, and the total utility is maximized.

Suppose That There Are Five Bottles of Lemonade,each of Which