Question

During Thanksgiving you participated in a pumpkin-pie eating contest since you love pumpkin pie. You really enjoyed the first two pies, the third one was OK, but as soon as you ate the 4th one you became ill and lost the contest. You got ______ utility from eating the 4th pie than eating the 2nd pie.

Answer 1

Answer:

The correct answer is letter "B": less.

Explanation:

Utility represents the satisfaction an individual perceives by consuming a good or service. Marginal utility is the joy the same individual perceives by consuming one more unit of the same product. Total utility refers to the aggregate utility the consumption of different pieces of the same good produces while diminishing utility explains at a certain point the individual will not perceive any benefit to continuing consuming a product.

In the example, the 4th slice of pie represents the diminishing utility point in which someone will start experiencing less utility than the consumption of the previous slices.