Elaine values the utility of her first cup of coffee at $1; a second cup, $.75; and a third cup, $.50.If Elaine drinks three cups of coffee for breakfast, her marginal utility is equal to
A)$.50, the value of her last cup of coffee.
B)$1.00, the value of her first cup of coffee.
C)marginal utility.
D)$2.25.
E)$1.50.

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. In this case, the marginal utility of Elaine's third cup of coffee is $.50, which is the value she places on her last (third) cup of coffee.

Elaine Values the Utility of Her First Cup of Coffee