314 PARTS THE CONSUMER 2 lowe the concept of marginal utilit

314 PARTS THE CONSUMER 2) lowe the concept of marginal utility to explain the fol- owing: Neusnal utility to explain the fol- wing: Newspaper vending machines are designed so that once you have paid more than one p machines pense once you have paid for one can of pop, dis- once you have paid for one paper, you could take an one paper at a time. But soft drink vending pense only one can of pop at a time

Solution

Marginal utility concept says that the utility or satisfaction decreases with increasing consumption which means a person will find maximum utility in its first consumption

So for a soft drink venture it shows that once you have paid for soft drink you will get one and that will have maximum utility and so the desire will be fullfilled and craving for next will be maintained

But in newspaper once you have paid you require more paper because there are different news and sections in different newspaper which you would like to read

This is the concept of marginal utility