Multiple Choice
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.
Correct Answer:
Verified
Correct Answer:
Verified
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