If Joey Kobayashi experiences diminishing marginal utility from eating hot dogs then
A)his total utility from eating hot dogs is negative.
B)the marginal utility from the next hot dog Joey eats will be negative.
C)the additional satisfaction he receives from eating another hot dog will be less then the satisfaction he received from his eating his last hot dog.
D)Joey is maximizing the marginal utility per dollar he receives from eating hot dogs.

Question

Quizplus · Accepted Answer

Diminishing marginal utility means that the additional satisfaction Joey receives from eating another hot dog will be less than the satisfaction he received from eating his last hot dog. This does not necessarily mean that his total utility is negative or that the marginal utility from the next hot dog will be negative. It also does not imply that Joey is maximizing the marginal utility per dollar he receives from eating hot dogs. Therefore, choice C is the best answer.

If Joey Kobayashi Experiences Diminishing Marginal Utility from Eating Hot