Asked by Haley Yasui on May 31, 2024

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Freddy has eaten three corn dogs at the county fair,and if he eats another,he will get sick on the roller coaster.Knowing this,and ignoring any impact that price might have on his decision,we can say that,for the fourth corn dog,the:

A) total utility is less than zero.
B) marginal utility is less than zero.
C) total utility curve is still increasing.
D) marginal utility curve is still increasing.

Marginal Utility

An additional amount of satisfaction gained from consuming an extra unit of a good, highlighting the concept of diminishing returns.

Total Utility

The total satisfaction received from consuming a certain amount of goods or services.

Corn Dogs

A popular snack consisting of a hot dog coated in a thick layer of cornmeal batter and deep-fried.

  • Gain insight into the diminishing marginal utility principle and its influence on spending habits.
  • Comprehend how marginal utility influences demand for goods and services.
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LN
Linda NguyenJun 02, 2024
Final Answer :
B
Explanation :
According to the law of diminishing marginal utility, as a person consumes more of a good, the marginal utility (additional satisfaction from consuming each additional unit) will eventually decrease. In this case, Freddy has already consumed three corn dogs and if he eats a fourth, he will get sick. Therefore, the marginal utility of the fourth corn dog is likely to be negative, meaning it will provide less satisfaction than the previous corn dogs. Thus, choice B is the best answer.