Question

Which of the following explains why the marginal utility on frozen popsicles is greater than on a 2-for-1 sundae special at the fair? The price of the popsicles is a better deal. The popsicles can be stored and eaten later. The sundae is more popular with customers. The price of the popsicle and the sundae is the same.

Answer 1

The popsicles can be eaten later

Step-by-step explanation:

In economics, utility is the satisfaction or benefit derived by consuming a product; thus the marginal utility of a good or service is the change in the utility from an increase in the consumption of that good or service.

Marginal utility is the addition utility derived from the consumption of one more unit of the given commodity.

Law of diminishing marginal utility :

This law states that, as we consume more and more units of the commodity , the utility derived from each successive unit goes on decreasing.