Asked by Nathan Gerlach on Jun 01, 2024
Verified
If you received a free month's trial membership in a gym,you would keep going until your marginal utility reached
A) a maximum.
B) zero.
C) a positive number.
D) a negative number.
Marginal Utility
The change in satisfaction or benefit derived by consuming an additional unit of a good or service.
- Comprehend the connection among marginal utility, total utility, and the decision-making process when considering the consumption of more units of a good or service.
Verified Answer
ZK
Zybrea KnightJun 05, 2024
Final Answer :
B
Explanation :
Marginal utility is the additional satisfaction or benefit derived from each additional unit of a good or service consumed. In the case of a free trial membership at a gym, the marginal utility of going to the gym will decrease over time as the individual becomes used to the experience and gains less satisfaction from it. Eventually, the marginal utility will reach zero or a point where the individual no longer sees any benefit, and they will stop going to the gym. Therefore, the best choice is B, as this represents the point where the individual's marginal utility has reached zero and they will no longer continue going to the gym.
Learning Objectives
- Comprehend the connection among marginal utility, total utility, and the decision-making process when considering the consumption of more units of a good or service.
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