The table below shows the utility schedule for a consumer of candy bars. This consumer begins to experience diminishing marginal utility when consuming the
A) third candy bar.
B) fourth candy bar.
C) sixth candy bar.
D) seventh candy bar.

Question

The table below shows the utility schedule for a consumer of candy bars.  This consumer begins to experience diminishing marginal utility when consuming the
A) third candy bar. 
B) fourth candy bar. 
C) sixth candy bar. 
D) seventh candy bar.

Quizplus · Accepted Answer

The consumer experiences diminishing marginal utility when the utility from consuming each additional unit of a good decreases. Looking at the table, we can see that the consumer's marginal utility decreases from 20 to 15 from the third to the fourth candy bar. Therefore, the best choice is to consume up to the fourth candy bar, as consuming more would result in lower marginal utility.

The Table Below Shows the Utility Schedule for a Consumer