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What is the optimal quantity of pizza slices for john to buy? Explain.

Sagot :

6 pizza slices. John will buy that amount of pizza for which his total utility is maximized. Whole utility is the total amount of pleasure or fulfilment a consumer experiences as a result of using a particular good or service. Marginal utility, or the pleasure a consumer has from consuming one more unit of an item or service, is sometimes contrasted with total utility.

Total utility is the total additional or marginal utility that results from each additional unit of consumer. So, in order to determine the overall utility derived from a given commodity, a customer must add up all marginal utilities up to the last unit of consumption.

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