Dave and Buster play two games of tennis,and 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 marginal utility from having lunch.
D) All of these must be true.

Question

Quizplus · Accepted Answer

According to the law of diminishing marginal utility, the utility from playing additional games of tennis will decrease as they continue to play. Therefore, the marginal utility from playing a third game must be less than the marginal utility from having lunch, leading them to make the rational choice to stop playing and go have lunch. We cannot conclude anything about who won the games of tennis from the given information.

Dave and Buster Play Two Games of Tennis,and Then Decide