Question

During Thanksgiving you participated in a pumpkin-pie eating contest. You really enjoyed the first two pies, the third one was okay, but as soon as you ate the fourth one you became ill and lost the contest. Your total utility ______ with the first three pies you ate.

Answer 1

Your total utility first increased then decreased with the first three pies you ate.

Explanation:

You really enjoyed the first two pies, the third one was okay, but as soon as you ate the fourth one you became ill and lost the contest.

Your total utility first increased then decreased with the first three pies you ate.

As the amount of commodity consumed increases, the utility goes on decreasing with each next consumption.