The following table describes utility for consuming cans of soda. Fill in the bl

Question

The following table describes utility for consuming cans of soda. Fill in the blank spaces and answer the following question: At what point does the law of diminishing marginal utility set in? Marginal utility never diminishes. Between 4 and 5 cans. Marginal utility diminishes everywhere. Between 3 and 4 cans. Goods A and B cost $1 each. The total utility one could get from consuming 1 unit of good A is 30. The total utility one could get from consuming 2 units of good B is 60. Based on rational choice one. Should consume more of good A. should be indifferent between consuming good A and B. should consume more to good B. would not be able to decide what to do because there is not enough information.

Explanation / Answer

Between 4 and 5 cans the law of diminishing marginal utility set in.

Should be indifferent between consuming good A and B.

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