Asked by Tonii White on May 29, 2024
Verified
Daniel Zimiles will buy more and more baseball cards until
A) the total utility of cards begins to fall.
B) the total utility of the cards falls to zero.
C) the marginal utility of the cards starts to fall.
D) the marginal utility of the cards falls to the price of the cards.
E) the marginal utility of the cards falls to zero.
Marginal Utility
The additional satisfaction or utility that a person receives from consuming one more unit of a good or service.
Total Utility
The entire pleasure derived from using a certain aggregate quantity of a good or service.
- Acquire knowledge on how marginal utility, total utility, and decision-making intertwine when consuming extra units of a product or service.
Verified Answer
SC
Sydoney ClarkeMay 30, 2024
Final Answer :
D
Explanation :
Daniel Zimiles will continue to buy more baseball cards until the marginal utility of the cards falls to the price of the cards. This is because consumers maximize their utility when the last dollar spent on each good provides the same level of satisfaction, which occurs when the marginal utility of a good equals its price.
Learning Objectives
- Acquire knowledge on how marginal utility, total utility, and decision-making intertwine when consuming extra units of a product or service.
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