If the price of movie admission declines and in response you attend twice as many movies as you would otherwise, then your expected marginal utility from the last movie you choose to see will be zero.

Question

Quizplus · Accepted Answer

Marginal utility is the additional satisfaction gained from consuming one more unit of a good or service. Even if you attend more movies due to a price decline, the marginal utility from the last movie is not necessarily zero; it may decrease but still be positive.

If the Price of Movie Admission Declines and in Response