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
Which type of investor owns a public corporation
Answers (1)
Nichole, a young entrepreneur, is very energetic and enthusiastic about her work. She gives personal attention to every project and motivates her employees to work toward the company's mission.
Answers (2)
67 people of 350 surveyed gave your company five stars. Of men, 40 out of 175 gave your company five stars. Was your company rated 5 stars more commonly among the general population or among men?
Answers (1)
Assume that the farmer and the rancher each has 24 labor hours available. if each person spends all his time producing the good in which he has a comparative advantage, then total production is
Answers (1)
The tendency to believe that our own cultural background is the baseline against which all other groups' behaviors should I evaluated is referred to as:
Answers (1)
New Questions in Business
Brooke owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home where she meets with clients, prepares bills, and performs other work-related tasks.
Answers (1)
A data set about injuries and illnesses at a company lists values of incidents per month. For example, element 469 of the data set is 2.7 incidents per month. In what units would the variance of this data set be stated?
Answers (1)
Select the statement that is false. Question 1 options: A. European immigrants settled in the North where they could work in the factories. B. Tobacco, cotton, and indigo were important crops in the South. C.
Answers (1)
Team cohesiveness does not necessarily lead to higher team productivity.
Answers (1)
Which type of appraisal includes judgment about the degree of potential harm or threat to well-being that a stressor might entail?
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?