Dave and Buster play two games of tennis,then decide to go have lunch.Using the concept of utility to explain their choices,we can conclude that:
A)they each won one game of tennis.
B)the marginal utility from playing a third game must be negative for them.
C)the marginal utility from playing a third game must be less than the utility from having lunch.
D)All of these must be true.

Question

Quizplus · Accepted Answer

The concept of utility suggests that people make choices based on their personal satisfaction or happiness, which is maximized when they allocate their limited resources (such as time or money) to the option that provides them with the highest marginal utility (the additional satisfaction gained from consuming one more unit of a good or service). In this case, Dave and Buster already played two games of tennis, which means that the marginal utility of playing a third game is likely to be lower than the utility they would get from having lunch (since they would be hungry at this point). Therefore, they would choose to have lunch instead of playing another game of tennis. We cannot conclude whether they each won one game of tennis based on this information.

Dave and Buster Play Two Games of Tennis,then Decide to Go