Final answer:
The question involves an economic utility function used to describe the satisfaction derived from consuming crabs and apples. Utility is subjective and measured in 'utils,' reflecting personal satisfaction. The principle of diminishing marginal utility dictates that the additional satisfaction from consuming each unit of a good decreases over time.
Step-by-step explanation:
The student's question involves analyzing Wilson's utility function, which is represented mathematically as u(c,a)=ca, where c is the consumption of crabs and a is the consumption of apples. This relates to the broader concept of utility in economics, which is the satisfaction or pleasure that individuals get from consuming goods and services. The notion of utility is a foundation for understanding consumer behavior and is quantifiable in terms of 'utils,' albeit these are subjective and cannot be compared between individuals.
Diminishing marginal utility is an important principle in economics, suggesting that while total utility may increase with consumption, the additional satisfaction (or marginal utility) gained from consuming each additional unit tends to decrease. In the context of Wilson's utility function, both crabs and apples provide utility, and the total utility is the product of the amounts consumed by each.
The utility function can also serve to highlight trade-offs in consumption choices. For example, consuming one more crab might require the sacrifice of consuming apples due to a fixed budget or other constraints, which can affect the overall utility. Economists use these functions to analyze optimal consumption combinations that maximize an individual's utility.