Question

Which statement best illustrates the concept of diminishing marginal utility?

A. As one consumes more hamburgers per week, one would be willing to pay a higher price for additional hamburgers
B. Some consumers will receive less satisfaction from consuming hamburgers than from consuming fried chicken
C. A typical consumer will receive less satisfaction from consuming the fourth hamburger than from the third hamburger in a week
D. A decrease in the price of hamburgers will cause consumers to buy more hamburgers because they can afford to buy more

Answer 1

The best illustration of diminishing marginal utility is a consumer getting less satisfaction from each additional hamburger consumed in a week, highlighting how each subsequent unit of a good provides less utility than the previous one.

Step-by-step explanation:

The statement that best illustrates the concept of diminishing marginal utility is: "A typical consumer will receive less satisfaction from consuming the fourth hamburger than from the third hamburger in a week."

This statement exemplifies the law of diminishing marginal utility, which posits that as an individual consumes more units of a good, the additional satisfaction or utility gained from each subsequent unit tends to decrease.

For instance, eating the first slice of pizza may bring considerable pleasure, but the utility perceived from eating the sixth slice is likely less, as the consumer becomes increasingly full.

This pattern applies to various goods and services, where the initial units provide greater utility than later consumed units, a phenomenon that resonates with everyday experiences, such as the decreased pleasure of eating a favorite food if consumed excessively.