Kathy eats five slices of pizza on a Saturday night but admits each slice of pizza doesn't taste as good as the previous one. This suggests that for Kathy the

Question

Quizplus · Accepted Answer

The concept of marginal utility describes the satisfaction or pleasure a consumer gains from consuming an additional unit of a good or service. In Kathy's case, each additional slice of pizza provides her with positive satisfaction (utility), but that satisfaction decreases with each slice she eats. This is a classic example of diminishing marginal utility, where the utility gained from each additional unit consumed decreases as the quantity consumed increases.

Kathy Eats Five Slices of Pizza on a Saturday Night