If a restaurant served free steaks,people would consume more and more steaks until their ________ fell to zero.
A)marginal utility
B)total utility
C)consumer surplus
D)None of the choices are correct.

Question

Quizplus · Accepted Answer

Marginal utility refers to the extra satisfaction or benefit obtained by consuming an additional unit of a good or service. At the beginning, consumers would enjoy each free steak they receive, increasing their total utility. However, as they consume more and more steaks, the marginal utility of each additional steak would start to decrease until it eventually becomes negative, i.e. the satisfaction obtained from an additional steak is lower than the cost (in terms of stomach space, potential discomfort, etc.). Therefore, people would stop consuming steaks when their marginal utility falls to zero.

If a Restaurant Served Free Steaks,people Would Consume More and More