Sierra likes chocolate-covered deviled eggs. After eating 10 chocolate-covered deviled eggs, she switches to strawberry ice cream covered in sauerkraut. We can conclude that
A) the chocolate-covered deviled eggs made Sierra sick.
B) the chocolate-covered deviled eggs now have a negative marginal utility.
C) at this point, the chocolate-covered deviled eggs have a lower marginal utility per dollar spent than that of strawberry ice cream covered in sauerkraut.
D) Sierra is minimizing her utility.

Question

Quizplus · Accepted Answer

Marginal utility refers to the additional satisfaction or utility that a person receives from consuming an additional unit of a good or service. When Sierra switches from chocolate-covered deviled eggs to strawberry ice cream covered in sauerkraut, it suggests that the marginal utility of consuming one more chocolate-covered deviled egg has become lower than the marginal utility of consuming the strawberry ice cream with sauerkraut. This does not necessarily mean the deviled eggs made her sick (A), that they have a negative marginal utility (B), or that she is minimizing her utility (D); rather, it indicates a comparison of the additional satisfaction derived from each food item at that point in time.

Sierra Likes Chocolate-Covered Deviled Eggs