The host at a party offers Justin a sixth beer.Justin says, "No thanks, man.The marginal utility of that fifth beer was, like, 20 cents, but the marginal utility of the sixth would be minus 10 cents." If Justin consumes the sixth beer, his total utility will
A)rise by 10 cents.
B)reach a plateau and remain constant.
C)fall by 10 cents.
D)fall below his marginal utility.

Question

Quizplus · Accepted Answer

Justin is indicating that the additional satisfaction he would receive from consuming the sixth beer would actually be negative. Therefore, if he were to consume it, his total utility would actually decrease by 10 cents.

The Host at a Party Offers Justin a Sixth Beer