Jeff and Roel like to eat pizza twice a week,burritos once a week,and steak four days a week.This variety of dinner choices illustrates the concept of:
A) instable preferences..
B) negative marginal utility.
C) diminishing marginal utility.
D) income maximization.

Question

Quizplus · Accepted Answer

The variety of dinner choices illustrates the concept of diminishing marginal utility, which means that the more of a particular good or service a person consumes, the lower the additional satisfaction that person derives from each extra unit. Therefore, Jeff and Roel may find that they enjoy their first pizza more than their second pizza in the same week, as the marginal utility of pizza decreases with each additional slice. To maximize their overall satisfaction, they should balance their consumption of pizza, burritos, and steak to avoid diminishing marginal utility.

Jeff and Roel Like to Eat Pizza Twice a Week,burritos