If Pete enjoys his first pancake of the morning much more than his fifth pancake of the morning, he is exhibiting
A) utility maximizing behavior.
B) diminishing marginal utility.
C) irrational behavior.
D) diminishing total utility.

Question

Quizplus · Accepted Answer

Diminishing marginal utility refers to the decrease in satisfaction or enjoyment from consuming additional units of the same product, which explains why Pete enjoys his first pancake more than his fifth.

If Pete Enjoys His First Pancake of the Morning Much