Asked by Yanna Listana on Jun 23, 2024
Verified
Joan loves sushi.Her first piece of sushi normally gives her a marginal benefit of $5.Each additional piece yields a marginal benefit that declines by $0.25 per piece.If her favorite sushi bar charges $2.75 per piece of sushi,how many pieces should she eat?
A) 8
B) 10
C) 5
D) 11
Marginal Benefit
Marginal benefit is the additional satisfaction or utility that a person receives from consuming an additional unit of a good or service.
Sushi Bar
A restaurant specializing in sushi, offering a variety of raw fish and seafood dishes, often served on a conveyer belt or prepared to order.
Additional Piece
A supplementary item or unit added to those already present or available.
- Adopt marginal analysis in varying scenarios to deduce the best decision-making processes.
- Perceive the connection between marginal cost and marginal benefit in aiming for optimum profit or utility.
Verified Answer
Let x be the number of sushi pieces that Joan eats.
Marginal benefit of the first piece = $5
Marginal benefit of the second piece = $4.75
Marginal benefit of the third piece = $4.50
...
Marginal benefit of the xth piece = $5 - ($0.25 * (x-1))
She should keep eating sushi until the marginal benefit of the next piece is equal to $2.75.
$5 - ($0.25 * (x-1)) = $2.75
Solving for x:
($0.25 * (x-1)) = $2.25
x-1 = 9
x = 10
So, Joan should eat 10 pieces of sushi.
Learning Objectives
- Adopt marginal analysis in varying scenarios to deduce the best decision-making processes.
- Perceive the connection between marginal cost and marginal benefit in aiming for optimum profit or utility.
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