If Bohai has one piece of gum in his mouth, he receives a utility of 12. If he puts a second piece of gum in his mouth, he will receive a marginal utility of 6. Adding a third piece will give a marginal utility of 1, and adding a fourth piece will cause Bohai to gag, yielding a marginal utility of -4. Which of the following statements is true?

Question

Quizplus · Accepted Answer

Total utility is calculated by adding the marginal utilities of each piece of gum. For the first piece, the utility is 12. The second piece adds 6, making the total 18. The third piece adds 1, making the total 19. The fourth piece has a marginal utility of -4, which when added to the total of 19, decreases the total utility to 15. Therefore, Bob's total utility decreases if he chews the fourth piece of gum.

If Bohai Has One Piece of Gum in His Mouth