An individual gets 5 units of utility from one slice of pizza and 9 units of utility from two slices of pizza.The principle of diminishing marginal utility implies that the total utility from three slices of pizza will be _____ units of utility.
A)exactly 12
B)less than 13
C)less than 9
D)more than 14

Question

Quizplus · Accepted Answer

The principle of diminishing marginal utility states that as you consume more of a good, the additional utility you receive will eventually decrease. In this case, the individual receives 5 units of utility from one slice of pizza and 9 units of utility from two slices of pizza, indicating that the additional utility from the second slice is less than the first slice. Therefore, it can be assumed that the additional utility from the third slice will be even less than the second slice, resulting in a total utility of less than 13 units.

An Individual Gets 5 Units of Utility from One Slice