Rational decision making

Figure 2 shows the total utility that a consumer derives from their daily consumption of bananas.

Based on the information in Figure 2, which one of the following statements is correct?

Figure 6 shows the marginal utility that a consumer gains from eating apples.

When 7 apples per day are consumed

Discuss the view that individual economic agents will always act as rational decision makers so as to maximise their utility.

According to the hypothesis of diminishing marginal utility, when marginal utility is zero

The hypothesis of diminishing marginal utility

A person eats six biscuits a day to maximise their total utility from the consumption of biscuits.

The price of biscuits increases by 50%, leading to a change in the individual’s daily consumption of biscuits.

Which one of the following combinations, A, B, C or D, shows the most likely changes in the individual’s total utility and marginal utility?

The law of diminishing marginal utility states that