The following table describes utility for consuming cans of soda. At what point does the law of diminishing marginal utility set in? $\begin{array}{|c|c|}
\hline \text { Cans of Soda } & \text { Total utility } \
\hline 1 & 14 \
\hline 2 & 30 \
\hline 3 & 47 \
\hline 4 & 57 \
\hline 5 & 56 \
\hline 6 & 50 \
\hline 7 & 42 \
\hline
\end{array}$

A) Between three and four cans
B) Between four and five cans
C) Marginal utility diminishes everywhere.
D) Marginal utility never diminishes.

Question

The following table describes utility for consuming cans of soda. At what point does the law of diminishing marginal utility set in? $\begin{array}{|c|c|}
\hline \text { Cans of Soda } & \text { Total utility } \
\hline 1 & 14 \
\hline 2 & 30 \
\hline 3 & 47 \
\hline 4 & 57 \
\hline 5 & 56 \
\hline 6 & 50 \
\hline 7 & 42 \
\hline
\end{array}$

A) Between three and four cans
B) Between four and five cans
C) Marginal utility diminishes everywhere.
D) Marginal utility never diminishes.

Quizplus · Accepted Answer

The law of diminishing marginal utility sets in when the additional utility from consuming an additional unit starts to decrease. Here, the marginal utility decreases after the third can, as the total utility increases by a smaller amount from the third to the fourth can compared to previous increases.

The Following Table Describes Utility for Consuming Cans of Soda