Table 3-1 shows the total utility from the consumption of various units of avocadoes.
Table 3-1 $$\begin{array} { | c | c | }
\hline \text { Units of avocadoes } & \text { Total utility } \
\hline 1 & 5 \
\hline 2 & 10 \
\hline 3 & 15 \
\hline 4 & 14 \
\hline 5 & 9 \
\hline
\end{array}$$
-Refer to Table 3-1.Diminishing marginal utility sets in from the _____ avocado.
A)third
B)first
C)fifth
D)fourth

Question

Table 3-1 shows the total utility from the consumption of various units of avocadoes.
Table 3-1 $$\begin{array} { | c | c | } 
\hline \text { Units of avocadoes } & \text { Total utility } \
\hline 1 & 5 \
\hline 2 & 10 \
\hline 3 & 15 \
\hline 4 & 14 \
\hline 5 & 9 \
\hline
\end{array}$$
-Refer to Table 3-1.Diminishing marginal utility sets in from the _____ avocado.
A)third
B)first
C)fifth
D)fourth

Quizplus · Accepted Answer

Diminishing marginal utility occurs when each additional unit consumed provides less additional satisfaction than the previous unit. In this table, the total utility increases from 5 to 15 as the number of avocadoes consumed increases from 1 to 3. However, the total utility decreases to 14 and 9 when consuming 4 and 5 avocadoes, respectively. Therefore, diminishing marginal utility sets in from the fourth avocado. As a result, the best choice would be to consume only three avocadoes, as the marginal utility of the fourth and fifth avocadoes is lower than their cost.

Table 3-1 Shows the Total Utility from the Consumption of Various