Question

Freddy has eaten three corn dogs at the county fair, and if he eats another, he will get sick on the roller coaster. Knowing this, and ignoring any impact that price might have on his decision, we can say that at the fourth corn dog the: a total utility curve is still increasing. b total utility is less than zero. c marginal utility is less than zero. d marginal utility curve is still increasing.

Answer 1

Answer:

C) Marginal utility is less than zero.

Explanation:

Marginal utility is less than zero because Freddy has reached a point in which one additional corn dog does not provide any extra benefit, and on the contrary, actually decreases his well-being by making him feel sick.

Not only he does not need any more corn dogs, but he would incurr a personal cost if he ate one more.