Question

If Dan's marginal utility from eating one apple is 100 utils and Jorge's marginal utility from eating one apple is 200 utils, it follows that Jorge likes apples more than Dan, assuming that Dan and Jorge measure the marginal utility of apples in exactly the same way.

a. True

b. False

Answer 1

The answer is B) False

Step-by-step explanation:

Marginal utility simply refers to the satisfaction a consumer gets by consuming a product or service. Basic economics states that the satisfaction you derive from consumption gradually increases but then hits a tipping point, after which, the law of diminishing returns kicks in.

This is when consumption has increased to such high levels that satisfaction starts to decrease.

In this case since Dan's marginal utility is only 100 utils compared to Jorge's 200, it means that Dan's satisfaction is actually less than that of Jorge.