Suppose Alice receives 150 utils from consuming one hamburger and 70 utils from consuming a second hamburger. What is the marginal utility of the second hamburger?
A)220 utils
B)150 utils
C)70 utils
D)0 utils

Question

Quizplus · Accepted Answer

The marginal utility of the second hamburger is simply the additional utility gained from consuming it. It is calculated as the difference between the total utility received from consuming two hamburgers (150 + 70 = 220 utils) and the total utility received from consuming only one hamburger (150 utils). Therefore, the marginal utility of the second hamburger is 220 - 150 = 70 utils. From this, we can see that consuming a third hamburger would likely provide even lower marginal utility, suggesting that the best choice would be to stop at two hamburgers.

Suppose Alice Receives 150 Utils from Consuming One Hamburger and 70