If the marginal utility of consuming one pound of apples is 200 units for John and 50 units for Jane, we can conclude
A)that John will eat four times more apples than Jane.
B)that John will eat the same amount of apples as Jane.
C)that John will eat four times fewer apples than Jane.
D)that John and Jane will not eat any apples.
E)nothing about how many apples John will eat compared to Jane.

Question

Quizplus · Accepted Answer

Marginal utility measures the additional satisfaction or utility that a person gains from consuming an additional unit of a good. It does not directly determine the quantity of the good that will be consumed. Therefore, knowing the marginal utility alone does not allow us to conclude anything about the comparative quantities of apples John and Jane will eat.

If the Marginal Utility of Consuming One Pound of Apples