Table 3-1 shows the total utility from the consumption of various units of avocadoes.
Refer to Table 3-1.Diminishing marginal utility sets in from the _____ avocado.
A)third
B)first
C)fifth
D)fourth

Question

Table 3-1 shows the total utility from the consumption of various units of avocadoes.
Refer to Table 3-1.Diminishing marginal utility sets in from the _____ avocado. 
A)third 
B)first 
C)fifth 
D)fourth

Quizplus · Accepted Answer

Diminishing marginal utility means that each additional unit consumed provides less additional utility than the previous unit consumed. From Table 3-1, we can see that the total utility increases as the number of avocadoes consumed increases up to the fourth avocado, where the total utility reaches its maximum. After the fourth avocado, the total utility still increases but at a decreasing rate, indicating that diminishing marginal utility has set in. Therefore, the best choice is to consume four avocadoes.

Table 3-1 Shows the Total Utility from the Consumption of Various