Kathy eats five slices of pizza on a Saturday night but admits each slice of pizza doesn't taste as good as the previous one. This suggests that for Kathy the

A) marginal utility of a slice of pizza is positive but decreasing.
B) marginal utility of a slice of pizza is negative.
C) total utility of slices of pizza is declining.
D) total utility of slices of pizza is increasing by larger and larger increments.

Question

Martha Maldonado · Accepted Answer

Final Answer : A, Explanation :  The concept of marginal utility describes the satisfaction or pleasure a consumer gains from consuming an additional unit of a good or service. In Kathy's case, each additional slice of pizza provides her with positive satisfaction (utility), but that satisfaction decreases with each slice she eats. This is a classic example of diminishing marginal utility, where the utility gained from each additional unit consumed decreases as the quantity consumed increases.

Definitions

Learning Objectives

Learning Objectives

Related questions