The below table shows the average utility (in utils) obtained from the consumption of goods A and B.Table 7.3

-Suppose that there are five bottles of lemonade, each of which gives a consumer the same level of utility. According to the law of diminishing marginal utility, how can the consumer receive the highest utility?
A)Consume all five bottles in the next hour
B)Consume all five bottles today
C)Consume all five bottles in one day next week
D)Consume two bottles today and three tomorrow
E)Consume one bottle each day for the next five days

Question

The below table shows the average utility (in utils) obtained from the consumption of goods A and B.Table 7.3
 
-Suppose that there are five bottles of lemonade, each of which gives a consumer the same level of utility. According to the law of diminishing marginal utility, how can the consumer receive the highest utility?
A)Consume all five bottles in the next hour 
B)Consume all five bottles today 
C)Consume all five bottles in one day next week 
D)Consume two bottles today and three tomorrow 
E)Consume one bottle each day for the next five days

Quizplus · Accepted Answer

According to the law of diminishing marginal utility, the additional utility gained from consuming each bottle of lemonade will decrease as the consumer increases consumption. Therefore, it is best to consume the bottles over a period of time rather than all at once. Consuming one bottle each day for the next five days ensures that the consumer receives the highest utility from the given five bottles of lemonade.

The Below Table Shows the Average Utility (In Utils) Obtained