If eating one piece of cake yields a total utility of 50 and the second piece increases it by 10, what is the total utility of eating two pieces?

If eating one piece of cake yields a total utility of 50 and the second piece increases it by 10, what is the total utility of eating two pieces?

• A. 50
• B. 60
• C. 40
• D. 70

Answer: (B)

To determine the total utility of eating two pieces of cake, you need to understand how total utility is calculated based on the utility from each piece consumed. The first piece of cake yields a total utility of 50. When you eat a second piece, it adds additional utility, specifically an increase of 10. You add the initial total utility from the first piece (50) to the increase in utility from the second piece (10). This gives you the equation: Total utility from two pieces = Utility from first piece + Increase in utility from second piece = 50 + 10 = 60. Thus, the total utility of eating two pieces of cake is 60. This demonstrates how total utility accumulates with the consumption of additional units and highlights the concept of diminishing marginal utility as the additional satisfaction gained from consuming another unit is less than that from the first.

To determine the total utility of eating two pieces of cake, you need to understand how total utility is calculated based on the utility from each piece consumed. The first piece of cake yields a total utility of 50. When you eat a second piece, it adds additional utility, specifically an increase of 10.

You add the initial total utility from the first piece (50) to the increase in utility from the second piece (10). This gives you the equation:

Total utility from two pieces = Utility from first piece + Increase in utility from second piece

= 50 + 10 = 60.

Thus, the total utility of eating two pieces of cake is 60. This demonstrates how total utility accumulates with the consumption of additional units and highlights the concept of diminishing marginal utility as the additional satisfaction gained from consuming another unit is less than that from the first.