After eating four slices of pizza, you are offered a fifth slice for free. You turn down the fifth slice. Your choices indicate that the
A)marginal utility for four pizza slices is negative.
B)total utility for five pizza slices is negative.
C)marginal utility is positive for the fourth slice and negative for the fifth slice.
D)marginal utility for the fourth slice is the largest among all slices.

Question

Quizplus · Accepted Answer

The concept of marginal utility explains that the satisfaction (utility) gained from consuming additional units of a good decreases as one consumes more units. In this scenario, accepting the fourth slice but declining the fifth slice suggests that the marginal utility of the fourth slice was still positive (you derived some satisfaction from it), but the marginal utility of the fifth slice turned negative (consuming it would decrease your satisfaction), indicating diminishing marginal utility.

After Eating Four Slices of Pizza, You Are Offered a Fifth