If Tom purchases and consumes an entire Pizza,which of the following is likely to be true?
A) The total utility of the first two pieces will be positive and the marginal utility of the second piece will be negative.
B) The marginal utility of the second piece will be positive and the total utility of the first two pieces will be negative.
C) The total utility of the first two pieces will be positive and the marginal utility of the second piece will be less than the marginal utility of the first piece.
D) The marginal utility of the second piece will be positive and the total utility of the first two pieces will be less than the marginal utility of the first piece.

Question

Quizplus · Accepted Answer

The law of diminishing marginal utility states that as consumption of a good or service increases, the marginal utility derived from each additional unit will eventually decrease. Therefore, the marginal utility of the second piece of pizza will be less than the marginal utility of the first piece. However, the total utility of the first two pieces will still be positive because the first piece will likely provide more utility than the second piece, and the cumulative utility of both will be positive. Option A is incorrect because the marginal utility of the second piece will likely be less than the first. Option B is incorrect because the total utility of the first two pieces will not be negative, since the first piece will provide a positive utility. Option D is incorrect because the total utility of the first two pieces will not be less than the marginal utility of the first piece.

If Tom Purchases and Consumes an Entire Pizza,which of the Following