Sadie has just eaten a donut and says it gave her a utility of 6.If she chooses to eat another donut:
A) we can assume she will get an increase in utility of at least 6 from the additional donut.
B) we can assume she will get a decrease in utility from the additional donut.
C) we can assume she will get an increase in utility of less than 6 from the additional donut.
D) we can assume Sadie's total utility will fall because of diminishing marginal utility.

Question

Quizplus · Accepted Answer

According to the principle of diminishing marginal utility, each additional unit consumed provides less additional utility than the previous unit. Therefore, we can assume that Sadie will experience an increase in utility from the second donut, but it will be less than 6 because the first donut already provided some utility.

Sadie Has Just Eaten a Donut and Says It Gave