Roberto and Pasua like to eat pizza twice a week, burritos once a week, and steak four days a week. This variety of dinner choices illustrates the concept of:
A)instable preferences.
B)negative marginal utility.
C)diminishing marginal utility.
D)income maximization.

Question

Quizplus · Accepted Answer

The concept of diminishing marginal utility explains why Roberto and Pasua choose to eat a variety of foods throughout the week. It suggests that the satisfaction (utility) gained from consuming more of the same good or service decreases as its quantity increases, leading them to diversify their meals to maintain a higher level of overall satisfaction.

Roberto and Pasua Like to Eat Pizza Twice a Week