Cory gets 18,23,and 25 units worth of total utility from consuming 10,11,and 12 raw oysters,respectively,and the price per oyster is 25 cents.Thus,one can infer that Cory
A)is not utility maximizing.
B)is experiencing diminishing marginal utility.
C)should NOT consume any more oysters.
D)has consumed too many oysters.

Question

Quizplus · Accepted Answer

Based on the given information, we can see that Cory is experiencing diminishing marginal utility because the total utility he gets from consuming each additional oyster is decreasing. This is evident from the fact that the total utility he gets from 11 oysters (23 units) is less than the total utility he gets from 10 oysters (18 units). Therefore, it would not be optimal for Cory to consume any more oysters beyond the point where the marginal utility falls to zero, as he would be paying more for each additional unit of utility.

Cory Gets 18,23,and 25 Units Worth of Total Utility from Consuming