While eating at Alex's "Pizza by the Slice" restaurant, Kara experiences diminishing marginal utility. She gained 10 units of satisfaction from her first slice of pizza consumed and would only receive 5 units of satisfaction from consuming a second slice, at the same price. Based on this information, we can conclude that
A)Alex may have to lower the price to convince Kara to buy a second slice.
B)Kara will not eat a second slice, even if it is given to her at no charge.
C)Kara will definitely want to buy a second slice of pizza.
D)even if Kara buys a second slice, she will not buy a third slice.

Question

Quizplus · Accepted Answer

Diminishing marginal utility means that the additional satisfaction Kara gets from consuming each additional slice of pizza decreases. Therefore, Alex may need to lower the price to make the second slice appealing enough for Kara to purchase, given that her satisfaction from the second slice is less than from the first.

While Eating at Alex's "Pizza by the Slice" Restaurant, Kara