Suppose that football tickets at your university are given away for free, and that there are still empty seats for all games. Ignoring all other costs of going to the game, you should attend until your: A. Total utility stops increasing B. Marginal utility begins to diminish C. Marginal utility stops increasing D. Total utility reaches zero

Question

Claire Arroyo

Business

31 August, 05:03

Suppose that football tickets at your university are given away for free, and that there are still empty seats for all games. Ignoring all other costs of going to the game, you should attend until your: A. Total utility stops increasing B. Marginal utility begins to diminish C. Marginal utility stops increasing D. Total utility reaches zero

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Answers (1)

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Mccarthy · Answer 1

The correct answer is letter "A": Total utility stops increasing.

Explanation:

Utility is the satisfaction or joy an individual perceives by consuming a good or service. Total utility represents the aggregate of all the utility a product gives to an individual. According to the Law of Diminishing Utility, the more a good or service is consumed, the total utility falls.

Thus, even if football tickets are given for free, they should be received until the total utility of attending the games stops increasing.