The first cookie that you eat is delicious, and a second cookie is also delicious but not as good as the first cookie. This statement best describes the idea of:
A) diminishing marginal utility.
B) increasing marginal utility.
C) utility.
D) constant marginal utility.

Question

Quizplus · Accepted Answer

Diminishing marginal utility refers to the decrease in satisfaction or benefit that a person derives from consuming each additional unit of a product. In this scenario, the second cookie is still enjoyable but not as much as the first, illustrating the concept of diminishing marginal utility.

The First Cookie That You Eat Is Delicious, and a Second