Question

On a hot summer day, a construction worker enters a mcdonald's fast-food restaurant. he orders the first big mac. he consumes it within 3 minutes. he then orders a second big mac and consumes it in 10 minutes. he eats only half of the third one in 18 minutes and throws away the rest. the store manager offers him the fourth for free. the construction worker says: "no thanks." for the construction worker described above, we can say that __________.

Answer 1

In the situation above, the construction worker could be described or has experienced a diminishing marginal utility. The diminishing marginal utility happens when an individual has consumed a lot of product or in other words, has an increase of product consumption in the same time the person has a constant consumed on other products. If this happens, there will be a decrease in marginal utility, causing the diminishing marginal utility which has happened in the situation above.