Question

Assume diminishing marginal utility. If Steven gets maximum utility from owning 10pairs of shoes, then Steven’s total utility from owning 12 pairs of shoes is ______ Steven’stotal utility from owning 11 pairs.

Answer 1

1) Less than

Step-by-step explanation:

If Steve owes maximum utility from owning 10 pairs of shoes, then whenever Steve buys more shoes after owning 10 his total utility will decrease, which means buying additional shoes after 10 provides negative utility. So when he buys 11 shoes, the 11th shoe will give him negative utility and the 12th shoe will give him even more negative utility. Thus the total utility from owning 12 pairs of shoes is less than the total utility of owning 11 pairs, because when he has 12 pair of shoes 2 pair of shoes give him negative utility, and when he owns 11 pair of shoes only 1 pair of shoes give him negative utility.