John likes Coca-Cola). After consuming one Coke, John has a total utility of 10

Question

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 utils. After three Cokes, he has a total utility of 50 utils. Does John show diminishing marginal utility for Coke, or does he show increasing marginal utility for Coke? Suppose that John has $3 in his pocket. If coke costs $1 each and John is willing to spend his first dollar on purchasing a first can of Coke, would he spend his second dollar on a can of Coke too? What about the third dollar? If John

Explanation / Answer

increasing marginal utility yes he would spend the $2nd on coke as his marginal utiliy is increasing and if he is willing to spend 1st dollar he will definitel spend 2nd yes it will be fair to say that john is addicted to coke

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