Ask Question
BusinessBusiness
19 March, 07:02

John likes Coca-Cola. After consuming one Coke, John has a total utility of 10 utils. After two Cokes, he has a total utility of 25 utils. After three Cokes, he has a total utility of 50 utils. Does John show diminishing marginal utility for Coke, or does he show increasing marginal utility for Coke?

+5
Answers (1)
  1. 19 March, 08:24
    0
    No, he doesn't show diminishing marginal utility. Yes, he shows increasing marginal utility for Coke.

    Explanation:

    The law of diminishing returns states that the marginal or addition satisfaction or utility derived from the consumption of a product increase until a pint and then starts to decrease.

    Units Total utility Marginal utility

    1 10 10

    2 25 15

    3 50 25

    After 3 bottles, John does not show diminishing marginal utility as the marginal utility (as shown above) continues to increase with each additional bottle of coke consumed.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “John likes Coca-Cola. After consuming one Coke, John has a total utility of 10 utils. After two Cokes, he has a total utility of 25 utils. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
If the supply of loanable funds shifts to the right, then the equilibrium interest ratea. and quantity of loanable funds risesb. and quantity of loanable funds fallsc. rises and quantity of loanable funds fallsd.
Answers (1)
Assume that you purchased 140 shares of Misty Company stock for $78 a share, that you received an annual dividend of $1.60 a share, and that you sold your Misty Company stock for $90 a share at the end of one year.
Answers (1)
Star, Inc., a prominent consumer products firm, is debating whether or not to convert its all-equity capital structure to one that is 30 percent debt. Currently there are 5,000 shares outstanding and the price per share is $86.
Answers (1)
At year-end, a department store shows a balance in the merchandise inventory account of $2 million and a physical inventory shows there is less than $2 million in merchandise on hand. What kind of inventory system does the department store use
Answers (1)
How are socialism and communism similar yet different?
Answers (1)
New Questions in Business
Eastern states mutual fund sold $82.5 million of assets during the year and purchased $93 million of new assets. the average daily assets of the fund were $330 million. what is the fund's turnover rate for the year?.25
Answers (1)
Clusters of marketable groups of customers with similar likes, dislikes, lifestyles, and purchase behaviors can be identified by multivariable segmentation systems that merge and analyze geographic, demographic, lifestyle, and behavioral data.
Answers (1)
Winter Wonder Inc. is a leader in producing winter sports equipment, including skis and skates. Recently, the firm decided to expand into the bobsled market and acquired Sleds by Bob Inc. This company produced bobsleds, but its sales had slowed.
Answers (1)
If patricia were to paint her living room alone, it would take 4 hours. her sister naomi could do the job in 5 hours. how long would it take them working together? if needed, submit your answer as a fraction reduced to lowest terms.
Answers (1)
2. Suppose you currently have $3,000 and plan to purchase a 3-year certificate of deposit (CD) that pays 2% interest compounded annually. How much will you have when the CD matures
Answers (1)
Home » Business » John likes Coca-Cola. After consuming one Coke, John has a total utility of 10 utils. After two Cokes, he has a total utility of 25 utils. After three Cokes, he has a total utility of 50 utils.
Sign Up Forgot Password?