If the total utility for eating up to five $2.00 hamburgers is 40,60,70,75,70,respectively,which of the following is true? A) A rational consumer would choose to eat five hamburgers at the price of $2.00 B) A rational consumer would choose to eat five hamburgers only if the price was reduced to $1.00. C) A rational consumer would choose to eat five hamburgers only if the 5^th hamburger as free. D) A rational consumer would have to be compensated to eat the 5^th hamburger.

Question

Quizplus · Accepted Answer

The total utility decreases from 75 to 70 when consuming the 5th hamburger, indicating negative marginal utility. A rational consumer would need compensation to consume it.

If the Total Utility for Eating Up to Five $2