📚 Learning Guide
Marginal Utility Per Dollar
medium

If a consumer is evaluating whether to purchase a third slice of pizza after enjoying two, which economic principle suggests that the satisfaction from the third slice will likely be less than from the first two?

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Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
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Choose the Best Answer

A

Diminishing Marginal Utility

B

Increasing Opportunity Cost

C

Consumer Sovereignty

D

Absolute Advantage

Understanding the Answer

Let's break down why this is correct

Answer

When you eat a slice of pizza, the first slice gives you a lot of enjoyment, but each extra slice gives you a little less extra pleasure. This idea is called diminishing marginal utility, meaning the benefit you get from each additional slice gets smaller. So after the first two slices, the third slice will feel less satisfying because the extra pleasure is lower. For example, if the first slice makes you feel very full and happy, the third slice might only add a little more satisfaction, not as much as the first. This principle helps explain why people often stop buying more when the extra benefit drops.

Detailed Explanation

When you eat more of the same food, each new slice gives you a little less happiness. Other options are incorrect because People sometimes think buying more slices makes the next best choice cost more, but that idea is about opportunity cost, not how happy you feel; Consumer sovereignty means buyers decide what to buy, but it doesn’t explain why a slice is less satisfying.

Key Concepts

Diminishing Marginal Utility
Marginal Utility
Topic

Marginal Utility Per Dollar

Difficulty

medium level question

Cognitive Level

understand

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