Steve is arguing with his girlfriend, Jane. They have been going out for a littl

Question

Steve is arguing with his girlfriend, Jane. They have been going out for a little more than two years.

Jane says to him: "I'm leaving you, Steve. Get over it."

Steve replies: "Are you saying that being single will make you happier than you've been with me? Speaking personally, I think the (TOTAL / MARGINAL) utility we've had in this relationship was much more than you could have had if you'd been single this whole time!"

Steve's use of the word "utility" rang a bell for Jane, who had taken an economics class. "It's not that at all. We've had a fine time. It's that the (TOTAL / MARGINAL) utility I would get by continuing our relationship isn't worth it anymore."

Steve replies: "I've never been dumped by someone citing the law of (DIMINISHING MARGINAL UTILITY / SUPPLY AND DEMAND) before. You're a piece of work, you know that?"

Jane doesn't hear. She has already walked off, leaving Steve feeling like something of a sunk cost.

Explanation / Answer

Answer for the First fill in the blanks is Total utility as Total utility will be much more than utiltiy of single Jane.

Jane was worried about Marginal Utiltiy as she would get for continuing this relationship each day i.e. Additional Utility added each additional day will be less for Jane so she is thinking of wlking off this relationship.

Steve understands the logic behind less Marginal utility i.e. Diminishing Marginal Utiltiy

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