Suppose you are eating buffalo wings at a local happy hour. The total utils from doing so after the fourth, fifth, sixth, and seventh wings are 30, 50, 65, 72, respectively. In this situation we have __________ marginal utility, which is generally __________ in the analysis of consumer choice.
A)increasing; assumed
B)increasing; not assumed
C)diminishing; assumed
D)diminishing; not assumed

Question

Quizplus · Accepted Answer

The marginal utility is the additional satisfaction (utils) gained from consuming one more unit of a good. From the fourth to the seventh wing, the additional satisfaction (marginal utility) from each additional wing decreases (30 to 22), indicating diminishing marginal utility, which is a common assumption in consumer choice analysis.

Suppose You Are Eating Buffalo Wings at a Local Happy