Karen has decided that she would enjoy eating another cookie. Which of the following statements is consistent with Karen's decision?
A) Karen's marginal utility has decreased with a corresponding decrease in total utility.
B) Karen's marginal and total utility remain unchanged.
C) Karen's marginal utility has decreased but it is unclear what has happened to total utility.
D) Karen's total utility has increased but it is unclear what has happened to her marginal utility.

Question

Quizplus · Accepted Answer

Karen's decision to eat another cookie suggests that her total utility has increased, as she derives additional satisfaction from consuming more. However, it is unclear whether her marginal utility has increased or decreased, as it depends on her subjective valuation of the additional cookie.

Karen Has Decided That She Would Enjoy Eating Another Cookie