John likes Coca-Cola. After consuming one Coke, John has a total utility of 10 utils. After two Cokes, he has a total utility of 25

Question

John enjoys drinking Coca-Cola. After consuming one Coke, he experiences a total utility of 10 utils. Upon drinking two Cokes, his total utility increases to 25 utils. After consuming three Cokes, his total utility rises further to 50 utils. Based on this information, does John exhibit diminishing marginal utility for Coke, or does he demonstrate increasing marginal utility for Coke?

Elda White · Accepted Answer

No, he doesn't show diminishing marginal utility. Yes, he shows increasing marginal utility for Coke.Explanation:The law of diminishing returns states that the marginal or addition satisfaction or utility derived from the consumption of a product increase until a pint and then starts to  decrease.Units         Total utility       Marginal utility 1                    10                          10        2                   25                         15                     3                   50                         25After 3 bottles, John does not show diminishing marginal utility as the marginal utility (as shown above) continues to increase with each additional bottle of coke consumed.

Anonymous · Answer

What are the given options so i may

Anonymous · Answer

Alot of credit card rewards

Lesly Cormier

John likes Coca-Cola. After consuming one Coke, John has a total utility of 10 utils. After two Cokes, he has a total utility of 25

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