Question

You have eaten two bowls of ice cream at Sundae School Ice Cream store. You consider eating a third. As a rational consumer you should make your choice by comparing:_______ a) the benefits from eating one more bowl of ice cream to how much three bowls of ice cream costs. b) the benefits from eating all three bowls of ice cream to how much one more bowl of ice cream costs. c) the benefits from eating all three bowls of ice cream to how much three bowls of ice cream costs. d) the benefits from eating one more bowl of ice cream to how much one more bowl of ice cream costs.

Answer 1

Answer: The benefits from eating one more bowl of ice cream to how much one more bowl of ice cream costs.

Explanation:

The consumer would consider, the marginal utility he would derive from consuming an extra bowl of ice cream as against the cost of a bowl ice cream.

The marginal utility of a quantity, is the satisfaction a consumer derives from consuming an extra unit of that quantity.

Answer 2

Answer:

A

Explanation: