Question

Explain why it must be true, even for someone trying to lose weight, that the last bite of food consumed must have positive marginal utility at a consumer optimum?

Short answer

The concept of marginal utility is used by economists to determine how much of a product consumers seem to be willing to buy. The law of diminishing returns is frequently used to justify progressive taxes.

Step-by-step solution

Introduction.

The added satisfaction that comes from having one more unit of a good or service is known as marginal utility. Economists use the concept of marginal utility to determine how much of a product consumers are willing to buy. Progressive taxes are frequently justified by the law of diminishing marginal utility.

Marginal utility at a consumer optimum.

Consumption of an additional item increases total utility, resulting in positive marginal utility. Negative marginal utility, on the other hand, occurs when the consumption of one more unit reduces the overall utility.