Kara experiences diminishing marginal utility

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Question

While eating at Alex's "Pizza by the Slice" restaurant, Kara experiences diminishing marginal utility. She gained 10 units of satisfaction from her first slice of pizza consumed and would only receive 5 units of satisfaction from consuming a second slice, at the same price. Based on this information, we can conclude that Multiple Choice even if Kara buys a second slice, she will not buy a third slice. Kara will definitely want to buy a second slice of pizza, because the marginal utility is positive. Kara will not eat a second slice, even if it is given to her at no charge. Alex may have to lower the price to convince Kara to buy a second slice.

Reference no: EM134046371

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