Diminishing Marginal Utility
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SOLVED: The relationship between the marginal utility that Sonia getsfrom eating ice-cream and the number of ice-creams she eats permonth is as follows: Ice-creams 1 2 3 4 5 6 Marginal Utility 40 3224 16 8 0 Sonia receives 4 units of utility from the last dollarspent on each of the other goods she consumes. If ice-cream costAED 8 each, how many ice-creams will she consume per month if shemaximizes utility? Select one:a. 5b. 1c. 2d. 4e. 3
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