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After eating four slices of pizza, you are offered a fifth slice for free. You turn down the fifth slice. Your refusal indicates that the:

a. Total utility for five pizza slices is negative
b. Marginal utility is positive for the fourth slice and negative for the fifth slice
c. Marginal utility for four pizza slices is negative
d. Marginal utility for the fourth slice is the largest among all slices

Respuesta :

Answer:

b. Marginal utility is positive for the fourth slice and negative for the fifth slice

Explanation:

The law of diminishing marginal utility states that as consumption increases, the utility received from consumption falls.

A rational consumer would continue consumption until utility is maximised. After tilooty is maximised, further consumption would generate negative utility.

Total utility is positive for the 4 slices, if I continue consumption after the fourth slice, utility would become negative.

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