Carol is very hungry. She has just sat down to eat. Her first bite gives her a certain level of utility. Her second bite increases her utility by more than the first bite. Her third bite increases her utility by more than the second bite. Carol has 40 bites left before she finishes. Which of the following statements is true about Carol?
A) Carol is being inconsistent with the law of diminishing marginal utility.
B) Carol's total utility decreases with each bite.
C) Carol's marginal utility will be negative when she takes her last bite.
D) Carol will eventually experience diminishing marginal utility by the time she finishes eating, if her marginal utility begins to decline.

Question

Quizplus · Accepted Answer

The scenario given in the question implies that Carol is experiencing increasing marginal utility, which is inconsistent with the law of diminishing marginal utility. However, the question also mentions that Carol has 40 bites left, indicating that she still has a considerable amount of food to consume. Thus, it is likely that her marginal utility will eventually start to decline, and she will experience diminishing marginal utility by the time she finishes eating. Additionally, it is not necessary that she will experience negative marginal utility when she takes her last bite, so options A and C are incorrect. Option B is also incorrect as the question specifically states that each bite increases Carol's utility.

Carol Is Very Hungry