Knowing that Jim's marginal utility of his fourth cookie is 10,which of the following statements is incorrect?
A) Jim's marginal utility of his third cookie could be 12
B) Jim's marginal utility of his fifth cookie could be 8
C) Jim's marginal utility of his fifth cookie could be 9
D) Jim's marginal utility of his third cookie could be 11
E) Jim's marginal utility of his fifth cookie could be 11

Question

Quizplus · Accepted Answer

Marginal utility typically decreases as consumption increases, so the marginal utility of the fifth cookie should be less than or equal to that of the fourth cookie. Therefore, it is unlikely for the fifth cookie to have a marginal utility of 11, which is higher than the fourth cookie's marginal utility of 10.

Knowing That Jim's Marginal Utility of His Fourth Cookie Is