Question

Diminishing marginal utiliDiminishing marginal utility means that A. the price of two hamburgers is twice the price of one. B. the total utility from one hamburger exceeds the total utility from two hamburgers. C. beyond a certain​ point, total utility decreases as income rises.ty means that

Answer 1

Answer: C beyond a certain​ point, total utility decreases as income rises

• Diminishing marginal utility means that beyond certain point, the total utility from consuming a good decreases, and increasing its consumption monotonically, makes that every additional unit of consumption delivers less utility each time.

• This is because most behavioral consumers models try to emulate the principle of scarcity: the less available units of a good, the more it values.
• Then, an increasing income would allow us to buy more and more goods, and because of the existance of diminishing marginal utility, we would get less utility from consuming  additional units of every goods each time.
• As an example,one could think about eating chocolate. The first bar would give us much happiness (utility), but increasing the number of bars  consumed would eventually vanish this "happiness".

Answer 2

Answer:

The correct answer is letter "D": Ralph will enjoy his second hamburger less than the first..

Explanation:

The Law of Diminishing Marginal Utility states that the more you consume a good or use a service, the less satisfied you are with each successive use or consumption. The law of diminishing marginal utility is a significant principle in assessing consumer preferences. This assumes consumers are rational and spend money in such a way as to maximize their contentment with each subsequent unit without impacting their overall enjoyment negatively.

Thus, Ralph's full sensation while eating a second hamburger will decrease the marginal utility of continuing eating hamburgers compared to the first hamburger.