Nona has just gone on a bike ride for an hour and says it gave her a utility of 7.If she chooses to continue to ride her bike for another hour:

Question

Quizplus · Accepted Answer

According to the law of diminishing marginal utility, the additional utility gained from consuming additional units of a good or service decreases as the quantity consumed increases. Therefore, we can assume that Nona's marginal utility for the second hour of bike riding will be less than 7, since she has already satisfied some of her desire for bike riding during the first hour. It is unlikely that her marginal utility for the second hour will be exactly 7, as she has already experienced some satisfaction from the first hour.

Nona Has Just Gone on a Bike Ride for an Hour