Question

During Thanksgiving you participated in a pumpkin-pie eating contest. You really enjoyed the first two pies, the third one was okay, but as soon as you ate the fourth one you became ill and lost the contest. You got ________ utility from eating the first pie?

Answer 1

You experienced the maximum utility from eating the first pie, as exemplified by the law of diminishing marginal utility, which states that each additional unit consumed brings less satisfaction.

Step-by-step explanation:

You got maximum utility from eating the first pumpkin pie during the Thanksgiving contest. The concept you're asking about relates to the law of diminishing marginal utility, which suggests that the satisfaction (utility) you receive from consuming additional units of the same good decreases with each additional unit after the first. In your case, this means that the first pumpkin pie brought you the most pleasure, and each subsequent pie brought less satisfaction until you eventually felt ill on the fourth pie. Businesses and individuals apply this principle to make decisions in everyday economic activities, whether it's eating pumpkin pie or balancing a range of products and services for maximum satisfaction.