3 If a person goes to the bowling alley planning to spend 15

3. If a person goes to the bowling alley planning to spend $15 but comes away with $5, what, if anything, can you conclude about the marginal util- ty of the alternatives (for example, bowl another line, have a soda or a sandwich) available to the person at the time he or she leaves?

Solution

Ans. Person come with 5 $ from bowling alley and not having anything it means he is satisfied completely and at this time his marginal utility is zero. If he would have something elae then his marginal utility will go into negative.