Question

The total utility from consuming five donuts is 9, 19, 30, 38, and 45 utils, respectively. Marginal utility begins to diminish after consuming the ____ don

Answer 1

Answer:

third

Explanation:

The utility for consuming the first donut is 9 utils.

The utility for consuming the second donut is the difference from the total utility for the first two and just the first donut.

$U_2 = 19-9 = 10\ utils$

The utility for consuming the third donut is the difference from the total utility for the first three and just the first two donuts.

$U_3 = 30-19 =11\ utils$

The utility for consuming the fourth donut is the difference from the total utility for the first four and just the first three donuts.

$U_4 = 38-30 =8\ utils$

Since the utility for the 4th donut is less than the utility for the 3rd donut, utility begins to diminish after consuming the third donut.