Sven likes to water ski,but can only water ski during the one week that he is on vacation.Therefore,he plans to ski every day,for eight hours a day.The first day,Sven skied for eight hours and enjoyed every hour.The second day,Sven slept in and then skied for seven hours,which was fun but not as much fun as the first day.The third day,Sven skied for six hours,but was starting to get a bit bored by the end.The fourth day,Sven skied for four hours and then took a nap.On the fifth day of Sven's vacation,Sven went blueberry picking all day.
Sven's vacation convinced him that
A)even for activities he really enjoys,diminishing marginal utility eventually sets in.
B)blueberry picking yields higher total utility than does water skiing.
C)even for activities he really enjoys,total utility declines each time he engages in it.
D)economic theory applies only to things you buy,not recreation.

Question

Quizplus · Accepted Answer

Sven's experience of diminishing marginal utility, where he enjoyed water skiing less and less as he did it more, suggests that even for activities he really enjoys, total utility eventually declines with each additional unit of the activity. This is a key concept in economic theory that applies to both goods and services, including recreation. The mention of blueberry picking is unrelated to the concept of marginal utility and cannot be concluded from the given information. Choice D is incorrect because economic theory applies to all types of choices, whether they involve buying or not.

Sven Likes to Water Ski,but Can Only Water Ski During