Question

Which situation is consistent with the law of diminishing marginal utility? a. The more pizza Joe eats, the more he enjoys an additional slice. b. The more pizza Joe eats, the less he enjoys an additional slice. c. Joe's marginal utility from eating pizza becomes positive after eating three slices. d. Joe's marginal utility from eating pizza reaches a maximum when total utility is zero.

Answer 1

Answer: B.

B.The more pizza joe eats , the less he enjoys an addiitional slice .

Explanation:

The Law of Diminishing Marginal Utility states that : As consumer consumes more & more of a commodity , the marginal utility attained with each succesive unit consumption keeps on declining .

(Marginal Utility - Additional satisfaction from additional units of a good's consumption)

This is based on some assumptions that : Consumption is continous (without break) , its in reasonable quantities (eg - water not in spoons) , goods quality is identical ,

The law depicting decreasing Marginal Utility with consumption , also implies Total Utility rising at diminishing rate

(Total Utility = Total satisfaction from total units of consumption)

Hence deriving (d) - TU is max when MU is zero

because if consumption increased beyond this point , will make MU negative & so reduce total TU

Answer 2

Answer:

b. The more pizza Joe eats, the less he enjoys an additional slice

Explanation:

The law of diminishing marginal utility says that when a person consumes more and more unis, the marginal utility from additional units goes decrease as marginal utility is an additional units derived.

The graph of the law of diminishing marginal utility declines

As in the given scenario,  the Joe eats more pizza, so if he enjoys an additional slice then from each additional slice he less enjoys than before