Brenda's marginal utility per dollar from the second hamburger is 20.Her marginal utility from the third hamburger would be
A) less than 20.
B) more than 20.
C) equal to 20.
D) not comparable to the marginal utility per dollar from the second hamburger.
E) some amount, but we need more information to determine how it compares to 20.

Question

Quizplus · Accepted Answer

Marginal utility usually decreases as a consumer consumes more and more of a particular good. In this case, Brenda's marginal utility per dollar from the second hamburger is 20, which means that the additional satisfaction she will receive from consuming the third hamburger will be less than the additional satisfaction she received from the second hamburger since she is willing to pay less for it. Therefore, her marginal utility from the third hamburger would be less than 20.

Brenda's Marginal Utility Per Dollar from the Second Hamburger Is